I was just ordered to pay child support and I received a letter stating I am already in arrears, what does this mean?

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An arrearage for child support purposes means that there is an outstanding monthly child support obligation that has not been paid.  Unfortunately if you have recently been ordered to pay child support through the Friend of the Court, then you may likely be in arrears.  After a child support order has been established, it then takes time for the child support order to be processed.  After the Friend of the Court processes the child support order, the Friend of the Court then sends the income withholding to the Michigan Disbursement Unit; the Michigan Disbursement Unit then processes the order and forwards that Order to the Payer’s employer.  After the Order has been processed by all of these agencies, then child support is automatically deducted from a Payer’s check.

The time is takes for all of these agencies to process this single Order can take weeks.  Therefore, by the time child support is directly taken out of your pay, you are already a month in arrears.  Most courts understand that Payer’s are likely in arrears initially.

I am in the Military, what is my “income” for child support purposes?

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A servicemember’s income, used to calculate child support, includes:

  • Basic and Specialty Pay (BAS);
  • Basic Allowance for Housing Type II rate (BAH-II);
  • Allowance for Quarters and Rations;
  • Veterans’ administration benefits;
  • G.I. benefits (other than your education allotment);
  • Drill Pay; and
  • Reenlistment bonuses

 

When are child care expenses no longer considered for child support purposes?

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In the State of Michigan, actual, predictable, and responsible child care expenses are considered for purposes of child support. The cost of child care will be allocated between the parents.

In Michigan, the courts presume that “the need for child care continues until August 31st following the child’s twelfth birthday.” 2013 MCSF Manual 3.06(D).  Nevertheless, the court has the discretion to allocate the cost for child care expenses beyond a child’s twelfth birthday if  the health or safety of the child so requires.

Child Support and Social Security Disability (SSDI)

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If you are the noncustodial parent and payer of child support who also receives SSDI, your children are also likely receiving a benefit from the Social Security Administration (SSA) based on your disability.  If so, you will receive a credit towards your child support obligation.

For example, if you are court ordered to pay $310.00 a month in child support, but the children already receive a benefit of $320.00 per month from the SSA, you will not likely be obligated to pay any child support.

On the other hand, if you are court ordered to pay $310.00 a month in child support and the children only receive $250.00 per month from the SSA, you will still be obligated to pay the difference between the court ordered obligation and the SSDI award.

What is the Friend of the Court service fee?

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The service fee is $3.50 per month in addition to the Payer’s (person who pays child support) assessed child support.  For example, if child support is calculated at $250.00 per month, the Payer actually pays $253.50 per month.  This $3.50 is not received by the Payee (person who receives child support); this service fee is assessed to reimburse the Friend of the Court for its services.

What does opting out of the Friend of the Court mean

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Opting out of the Friend of the Court means the Friend of the Court will not in involved in your case.

If the parties opt out of Friend of the Court services, the Payer of support will pay the Payee of support directly.  The Friend of the Court will have no responsibility to enforce child support which includes collecting child support or initiating an income withholding order. The Friend of the Court will not keep track of child support payments and therefore cannot provide either party with an accounting if such payments are in dispute.  The Friend of the Court will not attempt to resolve parenting time complaints or enforce any parenting time orders.

To find out whether parties can opt out of Friend of the Court services see blog post, “Will the Friend of the Court be involved in my case?”

What does the Friend of the Court do?

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The Friend of the Court provides information on the proceedings to the parties. The Friend of the Court will usually, depending on the county, schedule a meeting with both parties in attempt to resole issues of custody, parenting time, and/or child support.  If the parties cannot reach an agreement in regards to custody, parenting time, and child support the Friend of the Court will investigate such issues and make a recommendation.  If one (or both) party disagrees with the recommendation, he /she will have the opportunity to make an objection and proceed accordingly.

Will the Friend of the Court be involved in my case?

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If you have children, the Friend of the Court will likely be involved in your case unless you and the other party agree to opt out of Friend of the Court Services.

You may not opt out of Friend of the Court services if you or the other party is receiving Title IV-D services, there is evidence of domestic violence, or if unequal bargaining power exists.

Modification of Child Support

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Child support orders can be modified by right if (1) it has been three years since the court has reviewed the child support in the case or (2) if the petitioning party can prove a “change in circumstance” since the last child support order.

The court itself will decide what constitutes a modification in order to conduct a review for child support purposes. Change of circumstances can include: an increase or decrease of income, retirement, illness, increased needs of the children, additional daycare expenses, and new children are born to either party. Other instances can also meet the change of circumstance threshold to invoke a child support review.

A person petitioning for a Modification of Child Support should also understand that by petitioning the court to review child support, the actual amount of child support could increase to the Payer as easily as it can decrease. When the court reviews a motion to modify child support, the court reviews the income of both of the parties as well as the needs of the child. Therefore depending on the facts of the case when a review ensues, the result could be detrimental to the petitioning party who assumed that child support would indeed decrease.

How do I know if I am able to claim the Child Tax Exemption?

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Generally, a parent who has custody for the greater portion of the year may claim the child as a dependent, providing that both parents together provided more than 50% of the child’s support.

Your divorce decree, Judgment of Divorce, will likely outline which party is able to claim the child for tax purposes. If the Judgment of Divorce does not mention the child tax exemption, then look to the Uniform Child Support Order in your case. The amount of child support considers which party is able to claim the child for tax purposes and creates an adjustment for the other parent who does not receive this credit.

If a divorce is currently pending, then the Uniform Child Support Order would be the controlling document to outline the exemption credit.

 

My Ex-Wife said I can claim the child tax exemption this year, but your Judgment of Divorce says she is able to claim the child for tax purposes.   Can we make this agreement outside the Judgment of Divorce?

You should always strive to follow your Judgment of Divorce. In fact, if you do not follow the Judgment of divorce you could have repercussions. Nevertheless, the custodial parent, or in this case the Ex-Wife can relinquish the child tax exemption if she chooses. The IRS has a particular form for this relinquishment, Form 8332. The child tax exemption can be relinquished for one year or for a number of years.