New formula uses both parents’ income to
determine payment

Significant changes in Minnesota’s child support laws, that go into effect Jan. 1, 2007, have the potential to change lives for parents who share children, but are not married.
A new formula for calculating financial responsibility is among the key changes to a child support formula which will include both parents’ monthly gross income to determine each parent’s share of the cost of raising a child.
In addition, if either parent is voluntarily unemployed or underemployed, support must be calculated based on an assessment of potential income under the new regulations, unless that parent is physically or mentally impaired.
Child support guidelines have not undergone major modifications in over 20 years.
In the past, the amount of child support paid was generally based on the net monthly income of the non-custodial parent.
Nationwide, the shift toward a more balanced child care financial responsibility has been generated by fathers’ rights activists and non-custodial parental groups. However, some fear the new plan holds the possibility of short-changing the low-income custodial parent — mostly moms.
Locally, Koochiching County Community Services has already received many phone calls regarding the new law, according to Kathy Howdahl, lead child support officer. Most of those calls were from parents already paying child support who want to know if the new guidelines could change what they pay, she said.
In general, the new formula does not apply to child support payment orders established prior to Jan. 1, 2007, according to the guidelines of the Minnesota Department of Human Services.
However, modifications to preexisting orders may be possible. Requests for modifications due only to the new changes will probably not be modified, unless they meet certain criteria. But orders with any potential for modification are eligible for reviewing, according to Howdahl.
“The way our office will handle these modification requests is to issue a questionnaire and ask for it to be returned,” Howdahl said. “We will then thoroughly assess the information and respond with either a suggestion to proceed, or a denial.”
Child-support orders prior to Jan. 1, 2007 will be modified in 2007 only if:
• A parent can show that the gross income of the parent paying support has changed by 20 percent.
• There has been a change in the number of joint children the parent paying support is legally responsible for and is actually supporting.
• The parent or care giver of the supported child begins to receive public assistance.
• There is a substantial increase or decrease in child-care expenses.
• There has been a change in the availability of health-care coverage or a substantial increase or decrease in the coverage cost.
• The child supported becomes disabled.
• Both parties agree to modification of the existing order in compliance with the new guidelines.
And beginning Jan. 1, 2008, anyone can have their child support orders reviewed without meeting this year’s new conditions.
In general, the new child support legislation determines overall support with three separate obligations: basic support for housing, food, clothing, transportation, education; health care and child care.
The 2007 formula applies to any dissolution, legal separation, action establishing parentage or other proceeding that establishes or modifies child support and is filed after Jan. 1.
Calculations in the revised child support formula will include “parenting time deductions” which means that if a court has determined the percentage of time a child will spend with a parent, credits may be granted for that amount of parenting time.
Blended families will also be taken into account by granting deductions from a parent’s monthly gross income. Some of those deductions include spousal maintenance and child support paid for another family, as well as support for the legal child of one but not both of the parents.
Significant to low-income parents will be a “self-support reserve,” built into the formula so that if a parent falls below federal poverty guidelines, adjustments will be made for the provision of that parent’s basic needs.
In orders after Jan. 1, the court will decide if there is appropriate health care coverage for a child and who should provide that health care. The cost of coverage will generally be based on each parent’s income. If both parties have health care coverage, a judge may determine which plan is the more comprehensive. Under new regulations, either party may now initiate a request to a child support office to request reimbursement for a child’s medical expenses within two years of the expense occurrence.
As in the past, all court orders are subject to a cost-of-living increase every two years.
The new guidelines consider more factors in calculating child support obligations according to Charles Johnson, assistant commissioner of Children and Family Services for the Minnesota Department of Human Services. Johnson said the new system is designed to account for the complexity of child care situations.
Anyone can estimate projected child support figures by using a cost calculator at http://childsupportcalculator.dhs.state.mn.us.
Howdahl, the local child support officer, cautions that the calculations are only as accurate as the information entered.
She adds that the Web site’s worksheets can be printed out but cannot be saved online.
“Our staff has been trained and are right on top of this,” Howdahl stated. “They are optimistic that the process will work well. The new guidelines are easy to use.”
Howdahl said that she believes the major impact locally is that non-custodial parents are taking a look at whether their support payments will be substantially reduced.
For them, a payment reduction isn’t necessarily promised, Howdahl said.
“But the calculator does recognize both parents’ financial responsibility to raise a child,” she said, adding that the county’s child support office can be reached at 283-7000 and is ready and willing to help the public with any questions they have regarding all child support issues.