Minnesota Legislature Changes Child Support Equation

8/9/2005

The Minnesota Legislature and Governor Tim Pawlenty have passed into law a new formula for determining child support payments -- and the changes could affect your family.

Instead of considering only the income of the child support payer, the new formula factors in the incomes of both parents. Until the bill’s passage, Minnesota was one of only 11 states that did not combine parents’ incomes in calculating child support. Legislators hope that the update will result in a fairer system of child support for both custodial and noncustodial parents. Here’s how it works.

Previously, the formula would simply apply a certain percentage to the net monthly income of the noncustodial parent. For example, if a noncustodial parent had a net income between $951 and $1,000 per month, he or she would have to pay 24 percent of that income in child support without any consideration for the income of the custodial parent. Under the new formula, the amount that a noncustodial parent will pay per month is also determined based upon how much the custodial parent earns.

Furthermore, the new law determines income based upon gross income instead of net income. Before, a noncustodial parent’s income would not include income taxes, social security deductions, pension deductions, and other costs. Once the new system takes effect, each of these costs (as well as others) will be included in the calculation of a parent’s income.The law also adjusts for low-income noncustodial parents and eliminates exceptions for pretax expenses such as 401(k)s.

How will the law affect my family?

Working custodial parents with one child stand to receive less money whereas custodial parents with two or more children are likely to receive more support, depending upon whether or not the noncustodial parent earns more than the custodial parent does. The new law also allows a judge to evaluate a parent’s “potential” income based upon work history in the event that a parent is voluntarily unemployed.

There are significant changes in considering parenting time as well. Previously, a noncustodial parent could not receive a discount on child support unless he or she held joint physical custody (i.e., children are with him or her half of the time). Under the new version, if the child is with the noncustodial parent between 10 and 45 percent of the time, that parent will automatically be able to reduce payments by 12 percent.

When will the system be up and running?

To give effect to the new law, the state will need to reprogram its computer system used for managing child support and retrain relevant staff. This should take until about January 2007. Parents with new child support orders will be the first through the system. In 2008, most parents will be able to seek modifications of their present orders.

Contact Lommen Nelson.

If your family could be affected by these changes, contact the Family Law Section at Lommen Nelson. We represent a wide range of clients, including establishment and enforcement of child support. Attorneys Stacey DeKalb and Marc Johannsen have a strong reputation and proven record of success in a wide variety of family law matters. If you would like to learn more about putting our services to work for you, contact Marc Johannsen at marc@lommen.com or at 612-336-9302.