MICHIGAN CHILD SUPPORT FAQ #1: What Happens If My Income Varies?
MICHIGAN CHILD SUPPORT FAQ #1: How is a Person’s Variable Income Considered in Determining Child Support?
In Michigan, the Michigan Child Support formula takes into consideration numerous factors to calculate support, which includes each parent’s income, tax rates, the number of overnights a child has with each parent, and the cost of health insurance premiums paid by either parent. In the case of income that is variable due to seasonal factors (e.g., overtime, second jobs, bonuses, or profit sharing), the Michigan Child Support Formula at MCSF 2.02 (A) directs the court to start looking at party’s preceding twelve months of income and, if income varies considerably from year to year due to the nature of a parent’s work, the court may use a three-year average to determine a parent’s income. (MCSF 2.02(B)). Not to complicate the analysis further, the Michigan Child Support Formula at 1.04(E)(8) may deviate from the Michigan Child Support guideline if a parent receives bonus income that varies in amount or irregular intervals.
In Michigan, we often see bonuses and overtime tied to the automotive market, which has been harshly impacted by the pandemic. A skilled clinician like the attorneys at Banfield Couling Law and Mediation, can help mediate or negotiate the right payment structure for parents with variable income. Before you seek court intervention, let us help you navigate the complex intricacies of the Michigan Child Support Formula and compute support tailored for your situation. Don’t fall in the trap of merely looking at a parent’s last three-year average of income to calculate support. We can help negotiate payment of support based on variable income that best serves your family. For example, we can help calculate support using a percentage of the payer’s bonus, so you get the full benefit of the bonus received on an annual basis or in the case of the payer pay on what is received by you and not inflated on past successful years. Or, if you are the seasonal worker, provide the best evidence to the Court to reflect what the future will hold for your industry and not the past.
If you have any questions about your child support matter, please feel free to call us today. We can help you navigate the complex Michigan Child Support Formula to best maximize the support you receive or minimize the support you pay based on your individual facts.
PLEASE NOTE: This blog is not intended to constitute legal or tax advice. We do not recommend making important decisions of the type addressed in this article without specific legal or tax advice in advance. We at Banfield Couling Law and Mediation are here to help navigate your legal matter at any stage of your divorce. For any tax issues you face, we recommend consulting a licensed accountant. If you are seeking legal advice, the attorneys at Banfield Couling Law and Mediation are here to assist you.