How child support is presently calculated in Minnesota

In Minnesota, almost all minor children are entitled to the reasonable financial support (called "child support") of their parents. A minor child is an individual under 18 years of age, or an individual who is under age 20 who is still attending secondary school, or an individual who, by reason of physical or mental condition is incapable of self support. Generally, minor children who are not entitled to child support include those who have died, married, joined the armed forces or left home and established independent living arrangements with no intention of returning.

In any case where the parties have minor children together for whom child support is to be determined, the parties are required to provide information concerning their gross income and their most recent tax returns as part of the initial application to the court for a child support order.

"Child support" consists of basic support, child care support and medical support in (i) a divorce, a legal separation, an annulment or a parentage proceeding, (ii) a contribution action where public assistance has been paid to a parent or (iii) a domestic abuse case or a case in which child support ordered in a different state is being enforced in Minnesota.

Basic support means the dollar amount ordered for a child's housing, food, clothing, transportation, education costs and other expenses related to the child's care.

Child care support means the dollar amount ordered for the work-related or education-related child care expenses incurred by a parent.

Medical support means providing health care coverage for a child by carrying health care and dental insurance coverage for the child or by contributing to the cost of health care coverage, public coverage, un-reimbursed medical expenses and uninsured medical expenses of a child.

The following steps are used to calculate basic support:

1. Calculate the gross income of each parent. "Gross income" includes income from almost every source, but it does not include income from employment in excess of 40 hours per week under certain conditions, public assistance based on need, or the income of either parent's new spouse. It includes "potential income" when either parent is voluntarily unemployed or underemployed, or employed on less than a full time basis or there is no direct evidence of income. It also includes income from self employment, and it includes Social Security or Veteran's Affairs benefits attributable to a child which are received by a parent due to the parent's eligibility.

2. Subtract from each parent's gross income any alimony that has been ordered to be paid, in this or any other proceeding, whether or not it is actually being or has actually been paid.

3. Subtract from each parent's gross income any child support that has been ordered to be paid by either party in other proceedings for non-joint children, whether or not it is actually being or has actually been paid.

4. Subtract from each parent's gross income a credit for any non-joint child (up to a maximum of two) if the non-joint child actually resides primarily with a parent, and if the parent is not obligated to pay basic support for the non-joint child.

5. The result is each parent's Parental Income for Calculating Child Support, or PICS. The combined PICS for both parents (up to but not exceeding $15,000) and the number of joint children are used with a chart adopted by the legislature to determine the total guideline amount of basic support. Each parent's share of the total guideline amount of basic support is then determined by multiplying the total amount of basic support by each parent's proportionate share of their combined PICS
   The primary physical custodian is the parent who (among other things) provides the primary residence for a child. The share of basic support applicable to the parent who is not the primary physical custodian (called the "obligor") must, after adjustment for parenting time, be paid each month to the parent who is the primary physical custodian (called the "obligee"). The obligee's share of basic support is not required to be paid, as the obligee is not considered to be an obligor of child support

6. The obligor's parenting time is generally, but not always, expressed as a percentage determined by the average monthly number of overnights in each year the children spend sleeping in the home of the obligor. If the obligor's parenting time is less than 10%, the obligor's share of basic support is unchanged, and is the obligor's basic support obligation.
   
   If the obligor's average monthly parenting time is between 10% and 45%, then the obligor's share of basic support is reduced by 12%, and the result is the obligor's basic support obligation.

If the obligor's parenting time is between 45.1% and 50% and the parents have different gross incomes, a separate calculation is made which results in a basic support obligation for the parent with the greater gross income for determining child support.

After any applicable adjustment is made for parenting time, the result is the obligor's monthly basic support obligation.

Note that the parenting time adjustment to basic support requires that parenting time be determined between the parties prior to calculation of basic support.

Next, if the obligee has child care expenses, then (unless otherwise agreed by the parties and approved by the court) the net child care expense per month (which is the obligee's total monthly child care expense less federal and state child care income tax credits) is divided between the parents based on their proportionate share of their combined PICS, and the obligor is required to pay his/her share of the obligee's net child care expense to the obligee as child care support.

And last, if at least one parent pays for and carries appropriate (meaning accessible, comprehensive and affordable) health and dental insurance for the benefit of the children, then the court will order that parent to continue to carry such insurance for the benefit of the children. The amount of each parent's medical support obligation is then determined by multiplying the monthly insurance premiums for the children's medical and dental insurance by the share of PICS of each parent. If the parent carrying the insurance is a child support obligor, then the obligor's child support is reduced by the obligee's share of the premium cost of the children's health and dental insurance. If the parent carrying the insurance is the obligee, then the obligor's child support is increased by the obligor's share of the premium cost of the children's health and dental insurance. In addition, unless otherwise agreed by the parents and approved by the court, unreimbursed and uninsured medical and dental expenses, co-pays and deductible expenses are divided between the parents according to their shares of PICS. Other rules apply if both parents carry appropriate health and dental insurance for the children, or if neither parent carries appropriate health and dental insurance for the children.

In this way, each parent's obligations for basic support, child care support and medical support are determined. These amounts must be ordered by the court, and separately stated in the parties' court order, in specific dollar amounts. The new law also establishes a self-support reserve, under which monthly minimum child support is required of obligors whose income is less than 120% of the current federal poverty guideline for one person. And, if the court finds that the obligor receives no income and completely lacks the ability to earn income then the monthly minimum basic support does not apply.

Furthermore, if after subtracting 120% of the federal poverty guideline for one person from the obligor's gross monthly income, the result is less than the obligor's monthly child support obligation, then the court will order that the obligor's monthly child support obligation is the smaller of the two figures, reducing the obligor's medical support, child care expense and basic support, in that order, to zero, until the smaller figure is reached.

A deviation from the guideline amount of basic support is available if it would encourage prompt and regular payment of a monthly child support obligation and if it would prevent a party or the joint children from living in poverty. Deviation is available based on (among other things) the earnings, income, circumstances and resources of each parent, the extraordinary needs of the children, the standard of living the children would have enjoyed if the parents were living together (but recognizing that the parents have separate households), the benefit received by the parent to whom the tax deduction for dependency is awarded, the debts of the parties under some circumstances, and the extent to which (if any) the monthly child support obligation exceeds federal poverty guidelines.

In addition, the new law provides parties with the right to request court review of compliance with orders for parenting time and support, within six months after entry of the order. If a review hearing is requested, the burden is on the obligor to prove that child support payments are then current, and civil contempt sanctions may be imposed by the court for non-compliance by either party.

The services of the county are available under some circumstances to assist those seeking to collect child support, and if welfare has been paid in respect of minor children whose parents are involved in a divorce, then the county will become involved in collecting child support. Child support will be withheld from income from employment unless income withholding is waived by the court.

Minnesota has provided a child support calculator which is available at http://childsupportcalculator.dhs.state.mn.us/Calculator.aspx It is recommended that interested persons use the calculator and its included definitions as a way to learn more about child support in Minnesota. Because this brief overview cannot cover all of the possible circumstances that might affect child support, it is also recommended that interested persons consult with competent legal counsel to learn how Minnesota's child support laws may affect them.

Kevin F. Fitzgerald, Attorney at Law, in Eden Prairie, MN, serves clients in Chanhassen, Edina, Minnetonka, Bloomington, Plymouth, Wayzata, Shakopee, Chaska, Hopkins, Richfield, Hennepin County, and Ramsey County.

Kevin F. Fitzgerald, Attorney at Law
Suite 200
250 Prairie Center Dr.
Eden Prairie, MN 55344
Phone:  (952) 941-5767
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