Just like your wardrobe, the Michigan Child Support Formula needs to be revamped on a regular basis to adapt to the times. This year is our year for that refresh. Nearly every four years, the Friend of the Court Bureau, assembled by the State Court Administrative Office, reviews and updates the child support formula to comply with economic and legislative changes. The 2017 Michigan Child Support Formula Manual (MCSF) outlines some big changes in the formula that went into effect on January 1, 2017, including the following:
- The cost of mandatory health care coverage will now be deducted from a parent’s income available for support under 2017 MCSF 2.07(F).
- The allowable tax deductions for self-employed individuals, business owners, and business executives have been clarified and expanded under 2017 MCSF 2.01(E)(4).
- A new subsection regarding extremely high family income has been added. 2017 MCSF 3.02(E). The court may now exercise discretion when a family’s income greatly exceeds the highest income amount in the general care support tables to arrive at an appropriate result.
- Under 2017 MCSF 2.01(G), new income imputation factors have been added, including the number of work hours available in the local geographical area where the parent resides, the parent’s access to transportation, and the parent’s ability to drive. A new subsection, 2017 MCSF 2.01(G)(4), covering barred practices of income imputation that violate caselaw, has also been added.
- The criteria used to determine which parent should maintain health care coverage have been changed to consider the coverage available now through the Affordable Care Act under 2017 MCSF S-3.02.
- The reasonable cost for health coverage has been increased to 6 percent from 5 percent under 2017 MCSF 3.05.
For more information on the Michigan Child Support Formula, see chapter 13 of Michigan Family Law and chapter 5 of Michigan Family Law Benchbook.