A new equation on child support Support system to change in 2007

06/13/2005

Jean Hopfensperger
Star Tribune
June 13, 2005

Attention, divorced mothers and fathers—or those considering a split. Gov. Tim Pawlenty recently signed into law an overhaul of the state’s child support formula—and it could affect you.

For the first time, the formula will consider the incomes of both parents—not just the child support payer. The new law gives financial breaks for parenting time and for children from other marriages. Depending on whom you talk to, the new law either makes the formula more fair or continues to let deadbeat parents off the hook.

Here’s what you need to know; the answers were provided by legislators and
divorce attorneys.

Who will be affected by the new law?

Every Minnesota couple with a child support order will use this formula. And parents of the roughly 265,000 kids now getting child support will be eligible to seek modifications.

What’s the difference between the old formula and the new one?

For decades, child support was based on the net income of noncustodial parents, typically the fathers, and the number of children. For example, a noncustodial parent with a net monthly income between $1,001 and $6,700 would pay 25 percent for one child, 30 percent for two children and 35 percent for three. The new law looks at the gross incomes of both parents. It considers the cost of raising children, divides it based on the parents’ relative income, and then makes some adjustments for parenting time and for the lowest-income noncustodial parents.

More questions and answers on Page A4.

Will I get more or less child support?

Custodial parents, typically mothers, with one child are likely to get less money, especially if they’re working. Custodial parents with two or more children are likely to get slightly more support, especially if the noncustodial parent earns a lot more money than they do. Custodial parents who earn as much as their former spouse—or more—are likely to get less. But these are general estimates, and each individual case may differ.

When does the new law kick in?

January 2007. The state must first reprogram the computer system that manages child support for 265,000 kids in Minnesota, as well as train state and county staff. It also needs to create a web-based calculator for parents to use.

The first year, mainly parents getting new child support orders will go through the system. In 2008, most parents can seek modifications in their existing orders.

What will the law do about deadbeat parents?

Nothing. This law is about the formula for calculating child support. The hope is that noncustodial parents will see the formula as more fair and therefore be more willing to pay support.

Do noncustodial parents get a break for parenting time?

Yes. If the child is with them between 10 percent and 45 percent of the time, noncustodial parents automatically get a 12 percent cut in support payments. If each parent has 45 percent or more of the child’s time, support will be reduced further, based on the incomes of both parents.

Under the old system, only parents with joint physical custody were eligible for a financial break.

Will the law affect alimony payments?

No.

Won’t this clog up the courts, which already are overloaded with child support cases?

Ten new child support magistrates would be hired under this law. The legislation’s authors hope that by starting out with just new cases, the courts would face a more gradual transition.

If both incomes are supposed to be considered, what about custodial parents who don’t work—or refuse to work?

For the first time, their income could be “imputed”—meaning a judge who finds that a parent is voluntarily unemployed or underemployed can determine his/her “potential income” for calculating child support. Potential income is based on past work history or 1.5 times the minimum wage.

What do mothers’ rights groups think about this law?

The groups argue the new law helps noncustodial fathers far more than custodial mothers. They don’t like the financial breaks for parenting time or for second families, for example. And the bill does nothing about what they consider the biggest child support problem, namely getting deadbeat parents to pay.

They also worry that mothers who are custodial parents will be financially penalized for working hard and trying to make a better life for their children, because if they earn more than their husbands, they could lose or lessen their support.

What do fathers’ rights groups think?

They support the use of both parents’ incomes when determining child support. And they agree that noncustodial parents should get breaks if they have other children by another partner. But many want a bigger financial break for the time they spend with their children and the households they keep for the kids. And many want penalties for custodial parents who refuse to work. They’ve also argued for tighter controls on how child support is used.

Why change the formula?

Minnesota was one of 11 states that didn’t consider both parents’ incomes. Child support frequently got bogged down in disputes over financial breaks for parenting time. Also, the old formula was based on net income, which allowed noncustodial parents to deduct pretax expenses such as a 401(k)s before calculating support.

Where can I get more information?

Go to http://www.senate.leg.state.mn and in the “legislation” tab on the left, type in “SF 630” for the full legislation and a summary.