Guidelines for Calculating Child Support

Document with the name child support agreement.

Regardless of marital status, both parents have an obligation to support their child financially. Child support is court-ordered payment that is typically made by the noncustodial parent to the custodial parent to help pay for the costs associated with raising a child. It is usually ordered as part of a divorce, child custody matter, or paternity action — it can also be ordered as a separate action once paternity has been established. Whether you are the parent who is making or receiving the payments, you might find yourself asking, “how is child support calculated?”

How is Child Support Calculated in Michigan?

Calculating child support is complex — it is no longer simply calculated as a percentage of the paying parent’s income. Rather, the state now follows the “income shares” model, which takes the resources of both parents into account — and estimates how much money a child would have received if their parents were living together. If you are wondering, “how is child support calculated?” it’s essential to be aware that the Michigan guidelines take many factors into consideration when determining the amount of child support to be paid.

The factors under the Michigan child support guidelines include the following:

  • The income of both parents
  • The number of children who must be supported
  • The total number of overnight visits the children has with each parent
  • The costs of healthcare and insurance
  • Childcare expenses

The support obligation will consist of 1) a base amount; 2) medical support obligations which include both ordinary and extraordinary medical expenses; 3) and childcare cost obligations. Specifically, the base amount of support is calculated by applying the income of the parties, the amount of overnights each parent has, and the number of children to be supported. The base amount is then adjusted to determine the total obligation, depending on healthcare costs and childcare expenses.

How is Income Determined in Child Support Matters?

When determining how child support is calculated in Michigan, it is necessary to understand how the amount of each parent’s income is decided. Significantly, the child support formula uses each parent’s net income, instead of their gross income. Net income is defined as the income each parent brings in after the deductions and adjustments that are permitted under Michigan’s child support laws.

Income for child support purposes doesn’t only include wages and salary. It can also take into consideration a parent’s earnings that are derived from bonuses, a business, rental property, investment earnings, self-employment income, retirement income, tips, and various other sources. Critically, if a parent attempts to minimize their income to lower their support obligation, the court will look at what they are capable of earning. In cases where a parent is unemployed or underemployed, the court could impute income based on their work history, ability to work, level of education, and availability of opportunities.

Can a Judge Deviate from the Child Support Formula Calculation?

A common question is, “how is child support calculated when the amount awarded under the guidelines would not be fair?” Michigan law takes this into account. While judges are required to order the amount of child support that is calculated under the formula guidelines, there are certain circumstances in which they may deviate from the formula to arrive at a fair amount.

A deviation in the amount of child support calculated under the guidelines may be justified in situations where a child has special needs or extraordinary medical expenses. It may also be warranted in cases where a parent receives income from a bonus in varying amounts, a parent is making payments toward a bankruptcy plan, the judge awards property instead of monetary support — or the child earns an extraordinary income.

Can the Amount of Calculated Child Support Be Changed?

Child support isn’t always set in stone — the amount of child support ordered by the court can be changed by requesting a modification. A modification may be granted in cases where there has been a significant change in circumstances. For instance, a modification may be appropriate if a parent has lost their employment or their income has decreased; the other parent’s income has increased; one parent is spending more overnights with the child; or the family size has changed. A parent also has the right to request a review of child support every 36 months through the Friend of the Court.

Contact an Experienced Michigan Child Support Attorney

If you are asking the question, “how is child support calculated,” it’s best to consult with an experienced family law attorney who can best advise you regarding your specific case. Located in Sterling Heights, The Law Offices of Kevin R. Lynch P.L.C. provides a broad scope of family law services to Michigan residents, including those involving child support matters.

You can set up a free consultation to discuss your child support case by calling 586-336-1088 or contacting us online. We assist clients throughout Macomb, Oakland, and Wayne counties.