How Does Child Support Work in a Shared Custody Arrangement in Michigan?
The federal government created guidelines in the 1980s which stipulate that each state must follow a standard formula when determining child support. Michigan chose the shared-income model, based on the financial information and earnings of both parents. Also factored into the decision in Michigan is parenting time, or the amount of time the child spends in the care of each parent, when determining the amount of child support paid.
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Child Support Formula
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The Michigan Child Support Formula is used to determine how much financial support is necessary to ensure the needs of the child are adequately met. By using this formula, the State of Michigan and the federal government ensure the criteria used are consistent across the state to avoid discrepancies from one region to another. The formula is based on research data, national statistics and family economics to determine the cost of raising children, and in this case, in Michigan specifically.
The basics of the formula begin with how much money both parents earn and then subtracts expenses from that, such as other children in the household and employment expenses that cannot be avoided, such as license fees. After those deductions are made, the number of nights spent in each parents' home is considered to determine the level of support required.
Standard Expenses
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In accordance with Michigan's child support laws, each circuit court in Michigan has a branch called the friend of the court, which serves as an adviser to the court on child support and custody arrangements. The friend of the court makes recommendations on the amount of child support paid and custody arrangements.
When determining child support arrangements, the friend of the court will take into consideration expenses they consider to be standard or ordinary. These include daycare, health insurance, health-related expenses such as medical bills or dental bills and school-related expenses. Other expenses, considered extraordinary, such as summer camps or vehicle purchases, are typically divided between the parents based on income and resources. The division of these expenses are dictated by the friend of the court and are typically stipulated in the final divorce decree or child support arrangement.
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Judges' Orders
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The child support formula is used to establish a recommendation of child support by the friend of the court. However, the judge who oversees the case does not have to automatically enter the recommendation as the final order. If for some reason the judge decides to change the terms of the friend of the court's finding, he must include reasons for doing so in the court documents. The judge has the ability to increase or decrease the amount of support award at his discretion.
Healthcare Expenses
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When determining the amount of healthcare related expenses each parents is required to pay, the Michigan Child Support formula takes into consideration several factors. The availability and cost of employer provided or sponsored health insurance is the first factor considered. Michigan courts typically order one or both parents to ensure the child has health insurance, and the cost of the insurance premium for the child is divided between the parents. This payment can either be included as part of the monthly child support payment or can be paid separately at a later time.
No Income
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Regardless of whether a parent, or both parents, has no income, the court can still determine the parent is responsible for supporting the child. The Michigan Child Support Formula gives the friend of the court the authority to "impute" income to a parent without an income; in other words, the friend of the court can determine a parent has the ability to earn an income but chooses not to or chooses to earn a lesser amount in an attempt to reduce child support payments. In these circumstances the amount of income that should be earned is used to determine the amount of child support, and the friend of the court is required to submit reasons why it decided to use the imputed income amount in the formula.
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