The 2013 Michigan Child Support Formula Manual is available online; you can access the manual by simply clicking this link. As set forth in the manual, here is a summary of the changes scheduled to take place:
In the first significant change referenced above, section 1.04(E), a series of deviation factors are listed for consideration when strict application of the formula would generate inequities; the new factors are:
(18) A child in the custody of a third-party recipient spends a significant number of
overnights with the payer that causes a significant savings in the third party’s
expenses.
(19) The court ordered nonmodifiable spousal support paid between the parents before
October 2004.
(20) When a parent’s share of net child care expenses exceeds 50 percent of thatThe most significant change in the 2013 MCSF Manual lies in the treatment and explanation of the self-employed individual or business owner. Section 2.07(E) essentially has been re-written to include an introductory statement of tenets to consider when attempting to calculate a business owner's or self-employed individual's income.
parent’s base support obligation calculated under §3.02 before applying the
parental time offset.
The basic "add-backs", however, remain the same. Such add-backs include things like: rent paid by the business to the owner-payor; depreciation allowances; home office expenses; entertainment expenses; travel expenses; and vehicle allowances.
While the authors of the manual(s) would not agree, we here at this blog perceive a slight editorial shift in the new manual, going from a pro-payor to a pro-payee treatment of such individuals.
Although the exact language of the income and deduction sections [2.01(C) and 2.07(E)] has been slightly modified, the effect remains that: a) income includes retirement contributions from either the employee parent payor or the employer; and b) an employee parent deducts up to 5.5% of these contributions from the income calculation.
The 2008 MCSF Manual set the minimum child support obligation at $25 per month; this has been removed in the new manual.
And finally, a better explanation is offered in the 2013 MCSF Manual relative to the treatment of a payor's supplemental contribution to the children's benefit with items such as health care savings accounts or flexible benefit plans frequently offered by employers.
With our headquarters in Oakland County, Michigan, and a proven track record of case management in all the adjacent counties, we provide a free consultation for family court litigants that may have issues arising due to the changes in the MCSF.
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info@clarkstonlegal.com