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How is Child Support Determined and Paid in Minnesota?Minnesota Child Support – Basic Questions and AnswersThis article provides basic information on child support in Minnesota. Child support in Minnesota is determined under the provisions codified in Chapter 518A of the Minnesota statutes. This article will provide a basic overview of the key provisions of the income shares child support calculation and provide resources to the reader for further information. Question: When is Child Support Ordered? Answer: Child support will be ordered by a court whenever a married couple with minor children divorce or obtain a decree of legal separation. If a married couple with minor children lives separate and apart, a parent or the public authority may seek a support order. If a child is born to parents who are not married to each other, paternity (parentage) must be established before a support order will be issued. Finally if a child is in the physical custody of an entity or individual other than the parent, either by consent or court order, a support order can be entered in favor of the entity or custodian. “Child support” includes several different costs related to the expenses of children – a monetary amount for the care and support of the child – called basic support; “medical” support for insurance and prescriptions; work or education related “child care” costs; and support arrearages or payments to a public authority made on behalf of a child. Question: How is Minnesota Child Support Determined? Answer: Under the combined parental income for child support calculation (PICS), both the custodial and non-custodial parent’s gross incomes are used – with an adjustment for parenting time applied, as discussed below. Basic support is calculated using the combined gross incomes and a determination of each parent’s proportionate share of the combined income. The parent with the greater income will generally pay basic support to the other parent except if the parents share 50/50 physical custody and their expenses for their children are equal. The calculation of the amount is a function of the combined incomes (PICS), the number of children supported, and the amount provided in the guideline child support chart in the statutes. This amount is the presumptive amount of support the parents should pay and is allocated between the parents based on their proportionate share of the PICS. The gross income of a parent includes all regular and periodic sources of income (and will include the receipt of any periodic gifts to the parent, e.g., periodic payments from a trust or gifts). The calculation no longer “nets” out a parent’s income (including deductions for income taxes, retirement contributions, union dues, health insurance, or other prior statutory deductions. Gross income does not include child support received, public assistance payments, or a parent’s co-spouse’s income. Also, court ordered payments for spousal maintenance are deducted from the payer’s gross income; spousal maintenance received is added to the recipient parent’s gross income. For any parent who the Court finds is “voluntarily unemployed, underemployed, or employed on less than a full-time basis” or if there is “no direct evidence of income,” child support will be calculated on the parent’s “potential” income. Potential income can be based on an estimate of the parent’s probable earnings based on the parent’s employment history, the parent’s unemployment benefits or the amount the parent would earn if the parent were working full time and receiving 150% of the current minimum wage (highest amount of the above). This rule applies to both parents – regardless of the physical custody arrangement. The imputation of potential income can be added to a parent’s evidence of income from another periodic source – such as gifts, dividends, royalties, or trust payments – to arrive at the parent’s gross income for purposes of computing child support. The parent ordered to remit payments is called the “obligor” while the parent receiving the payments is the “obligee.” Question: Is there any Adjustment to Child Support? Answer: A non-custodial parent (or parents who share joint physical custody) will receive an adjustment to the basic child support amount depending on the number of overnights they are granted under their parenting time arrangements. An adjustment for overnights is calculated for each child being supported. Child support is not based on the actual amount of parenting time the non-custodial parent exercises. If the non-custodial parent is granted no overnight parenting time, no adjustment to basic child support is made. The Court may decide to order an amount other than “basic support” if certain “deviation factors” are present. The deviation factors include several factors, including earnings and resources of both parents, any extraordinary financial needs or resources of the child, the child’s living standards if the parents were living together, who gets the tax exemption, the parents’ debts and an obligor’s total payments for court-ordered child support.The basis for a deviation must be provided by statute. Question: How is Gross Income Calculated for Self-Employed Persons? Answer: Income for self-employed persons or from the operation of a business means the gross revenues derived from employment or the business, less “ordinary and necessary expenses.” Ordinary and necessary expenses generally must relate to the operation of the business and will not include accelerated depreciation expenses or investment tax credits, or expenses that are found to be inappropriate or excessive. Any self-employed person 0r a person who works as an independent contractor has the burden in court to prove that expenses they seek to deduct from their gross revenues are a legitimate business expense. After deducting all proper expenses from gross receipts, the remaining amount will be considered “actual” income. Under certain circumstances, a self-employed individual may also face the imputation of potential income unless they can show they are fully employed and not “underemployed” or working less than full-time in their vocation. Question: Is Child Support Paid When Both Parents Share Joint Physical Custody? Answer: If parenting time and parental incomes are equal, no basic child support will generally be payable unless the expenses of the child(ren) are not shared equally by the parents. Even if parenting time is equal, if the parental incomes are different, the parent with the higher income will usually pay basic child support to the other parent to balance the household resources of both homes, based on the number of overnights granted. The guideline formula is adjusted for the equal parenting time and the final award will consider the differences in each parent’s income. Question: How are Medical Insurance and Child Care Expenses Allocated? Expenses incurred by a parent (either custodial or non-custodial) for health insurance – medical support and child care (day-care) expenses are allocated under a support order. Answer: Medical support will include an order providing for the continuation of health insurance for the minor children, making a cash contribution to the parent who maintains coverage to reimburse the parent for the cost of coverage, and allocating the un-reimbursed or uncovered expenses between the parents. Most often, the parents will share these costs in proportion to their respective share of the combined parental income. Work or education related child-care expenses are allocated between the parents in proportion to the parent’s combined parental income for child support and the costs of care are adjusted based on the estimated federal and state child care credits available. Question: How can I calculate Child Support that I might receive or be ordered to pay? Answer: Minnesota Department of Human Services provides a web-based calculator that is available to the public for calculating basic child support and medical and child care support. Please understand that the final amount of child support ordered by a Court may differ from the results obtained through this calculation (for example, if the calculation is based on incorrect or incomplete information) but the calculator is routinely used by magistrates, referees and judges to calculate child support in Minnesota. The calculator is available at http://childsupportcalculator.dhs.state.mn.us/Calculator.aspx You will need to input your basic information and then submit the information for calculation. If you have questions, click on the instruction link for additional information. “Parent A” is the non-custodial parent (who does not have a majority of the parenting time. If both parents share equal parenting time (and overnights), Parent A is the parent with the higher income. “Parent B” is the parent with physical custody or the parent with the lower income if parenting time is shared equally. If you have questions, you can click on highlighted text for additional information. If you need additional assistance in determining or establishing child support in your case, please contact Minnesota's Divorce Attorney Paul Shoemaker. We would be happy to review your case to determine how we may be able to assist you in achieving a fair child support order. Additional Questions and Answers on Modifying Minnesota Basic, Medical and Day Care Child Support
Question: I was divorced several years ago and 3 of my kids have now graduated. My child support obligation has not changed since my divorce was final. Do I have to keep paying child support at the same amount when only 1 of my kids is still a minor?
Answer: Maybe not as the emancipation of a child can provide a basis for a modification of the amount you should now pay. but . . . An obligor has a legal obligation to continue paying child support as originally ordered until a court modifies that obligation based on the parties’ present circumstances. Modification can be made by court approved agreement or by the court after hearing. The obligor in this instance should seek advice to determine if the obligation could be modified based upon the new circumstances. It is likely that basic child support would be less if there is only 1 remaining “child” for child support purposes. In a recent review made on behalf of an obligor originally ordered to support 4 children, the obligor was entitled to reduce his obligation to less than 50% of the ordered amount when only 1 child remained eligible for support. Since every dollar saved or paid is an "after tax" or "net" dollar, a motion to modify child support should be brought as soon as there is a factual basis for the motion.
Question: I think my-ex (the obligor) is making a lot more money now than when we got divorced. Can I seek more child support? How do I know if my-ex's financial circumstances have improved?
Answer: Yes, you can seek a modification of child support to increase the monthly amount of basic child support. The court will compare the gross incomes of you and the ex (obligor) at the time of the prior order with your respective current gross incomes. If there is an existing child support order in force, the obligee or obligor can request a copy of the other parent's most recent filed US income tax return to determine if the income has changed. The person being asked to provide their federal tax return has an obligation to supply the return to the other parent within 30 days of the request. This request can be made every two years. If you do not receive cooperation, both parties are required to file financial documentation with the court to establish their present earnings.
Question: What do I have to prove in order to modify my current child support?
Answer: To determine if a child support obligation is modifiable (either to increase or decrease the amount), the circumstances that existed at the time of the prior order are compared to the present circumstances. If there has been a change in amount of earned income, the cost of insurance, a change or termination in daycare expenses, or change in living expenses, modification may be warranted. A statutory threshold formula for modification is to determine if the new circumstances would result (+ or -) in a change of at least 20% of the ordered amount and/or (+ or -) $75 per month. If so, then the prior order is presumed unreasonable and unfair and a new amount of basic, medical and daycare child support should be ordered.
Question: Can I get retroactive relief when I have overpaid?
Answer: An obligor or obligee is entitled to relief retroactive to the date they filed a motion with the court seeking to modify their existing child support order. If you believe modification is warranted, you should immediately file a motion to change the ordered amount (whether you seek to increase the obligation or decrease your obligation). Contact Minnesota's Divorce Attorney Paul Shoemaker today at 952.224.4605 to discuss your rights to modify child support. Advertisement © 2019 Paul F. Shoemaker If you are interested in further reading on Minnesota child support, see an excellent overview with questions and answers provided at the following link by author Lynn Aves: http://www.house.leg.state.mn.us/hrd/pubs/ss/sscsup.pdf
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