2021 MICHIGAN CHILD SUPPORT FORMULA MANUAL CHANGES - By: Referee Amanda Kole Friend of the Court
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2021 MICHIGAN CHILD
SUPPORT FORMULA
MANUAL CHANGES
By: Referee Amanda Kole
Friend of the Court
Changes and Clarifications
• Clarifications – rules already effective, just explained better
• Changes – new rules that take effect in orders entered
beginning Jan. 1, 2021
2021
Clarifications
Economic Potential Dependent Parenting
Capital Gains Depreciation Child Time in Non- Spousal
Updates Income Support
Benefits Parent
Custodian
Cases
ECONOMIC UPDATES – SUPPL.
General Care Low Income Annual Ordinary
Tables Threshold Medical
• Cost-of-living • Increased to $1,063 • Increased to $454
update for one child
Clarified Capital Gains 2.01(C)(6)
Single year
Exclude
or event, or
portions
cash not
considered
Net gains immediately
in property
are income available =
division
consider as
between the
income over
same parties
several years
Clarified Depreciation
Allowable Deductions for Straight-line depreciation
2.01(E)(4)(e)
Home offices and personal vehicles = added back as
income
Accelerated depreciation added back as income, but a
parent may be given credit for straight-line amount if
they prove what it would have been
POTENTIAL INCOME 2.01(G)
• Added terms:
• Earnings History
Updated for • Literacy
new Fed Reg • Age, Health, Residence
• Clarified – inferring that incarceration is voluntary
Req’ments unemployment is improper (without evidence that the
crime was committed with intent to reduce income or
avoid support).
DEPENDENT CHILD BENEFITS Clarified how benefits are counted as income • SSR, SSD, RR, VA • 2.01(I), (J) & (K) Added clarification to crediting benefits • Credit is only given for benefits counted as payer’s income • 3.07(A)(4)
DEPENDENT CHILD BENEFIT
• MCSF-S 3.05
• Added to provide additional clarification
• Provides examples for different benefit
Added Supplement scenarios
section
• See other Sheets
Non-Parent Custodian and
Parenting Time Offset
• 3.03(B) and 4.01(D)
• Clarified that PTO does not apply to
nonparent custodian calculations
SPOUSAL SUPPORT
Spousal Support 2021 MCSF Child Support
2.07(A) Language Application
• Clarified • 2.07(A): slight • Spousal support paid
alimony/spousal is only deducted
support to align with language from income for child
2017 tax law changes change in support purposes if it
recognition of is paid in a case
changing tax other than the one
under consideration
treatment – but • Spousal support
basic tenets did received is only
not change included in income
for child support
purposes if it is
received in a case
other than the case
under considerationADDITIONAL CHILDREN
2.08(B)
Increased the Additional Children
additional child Number of New Old
adjustment Children Percentage Pct
1 83% 85%
• In order to preserve funds to 2 75% 77%
support additional kids, the 3 68% 72%
adjustment was increased 4 64% 69%
2%-6% depending on the # of 5 or more 60% 66%
additional kidsCHANGES
Changed Deviation • Removed Incarceration
Reasons • Changed administrative efficiency threshold
Added reasons for Removed “In rare circumstances”
removing Ordinary Incapacitation
Out-of-pocket costs covered by employer-paid benefits (e.g., HRA)
Medical Expenses
• Coverage types
Health Care Changes • “Accessible” defined
• Defines
Incapacitated Section • Use of prospective languageDEVIATION REASONS
Removed • 1.04(E)(7)
Incarceration • Removed because of
later additions related
as reason to to incapacitation
deviate
• 1.04(E)(19)
Changed • Increased threshold to
Administrative $20
Cost Threshold • (Not a minimum order)ADDITIONAL MEDICAL EXPENSE
EXCEPTIONS 3.04(B)(3)
Two new exceptions when a court may order all medical
expenses as “additional” and removed “in rare
circumstances” language from application
An incapacitated payer’s base support obligation is
set at zero (4.02)
Recipient has employer-paid benefit (e.g., health
reimbursement arrangement) that pays the recipient’s
initial out-of-pocket expenses for the childrenHealth Care Coverage Updated for
Statutory Change MCSF 3.05
Public Updated
Clarifies
coverage is MCSF-S 3.02
when both
an alternative “Accessible” for
parties may
means to coverage Determining
be ordered
meet the defined Which Parent
to provide
requirement 3.05(A)(3) Should
coverage
to provide Provide
3.05(B)(1)(b)
coverage CoverageINCAPACITATED PARENT
New Section Defined
• 4.02 added to cover • The inability to pay the
incapacitated parent issues ordered support obligation
caused by a parent being
temporarily or permanently
unable to earn an income for a
period that will likely last 180
days or longer and due to
disability, mental
incompetency, serious injury,
debilitating illness, or
incarceration.Incapacitated Parent
Orders should MCSF-S 3.04
include Use temporary added to
prospective orders that provide
Court may set language – remain additional
support allows for modifiable context and
obligation to quicker relief if during the examples to this
zero for periods an incapacitating period of issue
of incapacitation event occurs uncertainty (i.e. • Also added to
• Suggested retroactive MCSF-S 3.01 as
language available substantial change
benefits) in circumstance
in MCSF-S
requiring a reviewQUESTIONS & NOTES
SCAO – updated UCSO
• #2 - Health insurance provision
• But did not include language about incapacitated parent.You can also read
