2025 Changes to Child Support

The Michigan Child Support Formula (MCSF) is getting updated on January 1, 2025. These changes may impact and are important for anyone paying or receiving child support in Michigan to be familiar with. Here are the key updates, which include: clarification on Ordinary Medical Expenses , the yearly amount for annual Ordinary Medical Expenses , rules about including deferred compensation as income , whether a deviation must be conducted where there is a deviation factor present, and the new presumptive period for child care expenses to be accepted.

Ordinary Medical Expenses Clarified (MCSF 3.04(A))

• The new text of the rule clarifies and further defines or delineates medical obligations and that the annual ordinary medical expense are expected. “Extraordinary medical” expenses are those which exceed the ordered annual ordinary medical expense amount, including the payer’s uninsured medical expenses. They are labelled “extraordinary” because the payer already reimburses the payee in advance for anticipated “ordinary” medical expenses.

Annual Ordinary Medical Amount Change (MCSF-S 2.02(A))

• The new rule significantly reduces the annual ordinary medical expense amounts. Beginning on January 1, 2025, the amounts will range from $200.00 annually ($16.67 monthly) for one child to $1,000.00 annually ($83.33 monthly) for five or more children.
• Under the prior 2021 MCSF, the amounts ranged from $454.00 annually ($37.83 monthly) for one child to $2,269.00 annually ($189.08 monthly) for five or more children.

Calculation of Income Available for Support in Closely Held Businesses (MCSF 2.01 (E)(4)(d))

• Rule clarifications dictate when deferred compensation is considered income for child support calculations.
• Retained earnings in a company owned by a parent should be included in their income unless essential for company operations.
• A three-year average should be used to determine income from salaries, bonuses, management fees, etc., unless legitimate reasons for reductions exist.

Use of Deviation from Support Factors (MCSF 1.04(E))

• The new rule clarifies that the existence of a deviation factor does not require the court to deviate from the MCSF.

Presumed Allowable Child Care Expenses (MCSF 3.06(D))

• The changes extend the presumed time for allowable childcare expenses through the last full month before the child’s 13^th birthday, extending the presumed allowance time frame by one year.

Conclusion:

Navigating child support can be a frustrating and cumbersome process. Our experienced attorneys can work with you to understand what you are owed or may owe in child support. Don’t wait, determine what is your fair child support amount right away by contacting our experienced legal team in Grand Rapids at 616-698-0000 or www.clickforhoward.com