Thursday, October 11, 2007

The Child Support Laws Have Changed (For the Better?)

The children of Minnesota may be getting a lot less child support from now on after the Legislature did a major rewrite of the child support laws.

How does this affect you?
· First, if you have an existing child support order, nothing will change in 2007 unless:
· One parent brings a motion to change child support; AND
· The parent paying support has a 20% increase or 20% decrease in GROSS income; OR
· The parents have more children together; OR
· A child of theirs becomes disabled; OR
· Either parent starts receiving public assistance.

If those threshold qualifications are met, then the change in the child support order has to result in an increase that is 20% more and $75 more per month than the present order. If those qualifications are met, then present support can be adjusted in 2007.

The reality is that in 2007, barring major increases or decreases in income, most child support orders will remain the same.

Second, starting January 1, 2008, the rules loosen up and child support can be modified if there has been a “substantial change of circumstances” for either party that result in a modification of child support of at least 20% and $75

Third, if you filed a divorce, separation, or paternity action after January 1, 2007 the new support laws apply. The changes are these:

· Both parties’ gross incomes (used to be net income) are computed and subjected to the child support calculations. The old law took a certain percentage of the non-custodial parent’s net income. With the new law, both parent’s gross income will be used to calculate support.

· Support is apportioned on the number of overnights the children spend with each parent. The law itself calculates time in percentages, but a good rule of thumb is that two weekend overnights and one weekday overnight, will mean that that parent will get a 12% discount on child support. Under the old law, the number of overnights was not taken into account.

· Support is specifically unlinked to what custody is called. “Joint physical custody”, “shared parenting time” “sole physical custody” are irrelevant to the computation of child support. They are relevant in determining where the child’s residence is and which parent/s has primary responsibility for the child’s care.

· The parent receiving the support remains solely obligated for the children's clothes, school supplies and activity costs, food at home, and all the other costs of raising children (school pictures, birthday parties, sports costs, driving). That is often, but not always, less under the new law than under the old law. If you are divorcing under the new law it is smart to also negotiate sharing those costs of raising the children.

Medical insurance and costs will also be treated differently. The Court will look at insurance coverage available to both parents to determine which insurance plan is best for the children. Instead of equally dividing insurance and uninsured health and dental costs, the amount each parent pays will depend on their gross income and their child support calculation. What that means is that parents will pay a percentage of the costs rather than divide it 50-50. Again, it is more likely than not, that the primary parent will get less money.

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