State of Wisconsin
Department of Children and Families
DCF
150
Child Support Percentage of Income Standard
The Wisconsin Department of Children and Families proposes to
repeal
s.
DCF 150.05 (1) (a)
(note)
;
to
amend
s
s
.
DCF 150.02
(10)
and
(13)
7.
a
nd
8., 150.03
(3)
and (5)
, 150.04
(1)
(a) and (b) (8), (2) (a) 1.
and
(b) 5.
and
6.
, a
nd (5) (a) and (e), 150.05 (1) (a), (b) 2.
and
3., and (d) 2.
,
and (2) (a); and
to
create
ss.
DCF
150.03
(5) (b)
and (Note)
, 150.03
(5m)
and (Note)
,
150.04 (2) (b) 7.
and
(Note), (5) (e) and (Note) and (f), and (6) (c) and (Note), 150.05 (1) (g) and (Note)
,
and DCF 150 Appendix E
,
relating to the
child support
p
ercentage of income standard
.
Analysis Prepared by the Department of Children and Families
Statutory authority:
Section
49.22
(9)
, Stats.
Statutes interpreted:
Sections
49.22
(9)
(a)
,
767.225
,
767.34
. 7
67.501, 767.511, 767.513, 767.
59
(4) and 767.89
(3), Stats
Explanation of Agency Authority
The Wisconsin Department of Children and Families is responsible for administering the Child Support Program in Wisconsin under
s.
59.53
(5)
,
Stats.
Section
49.22
(9)
,
Stats
.
, provides
that “t
he department shall promulgate rules that provide a standard for courts to use in determining a child support obligation based upon a percentage of the gross income and assets of either or both parents. The rules shall provide for consideration of the income of each parent and the amount of physical placement with each parent in determining a child support obligation in cases in which a child has substantial periods of physical placement with each parent.”
Summary of the Proposed Rule
Income and Benefits
The
proposed rule
remove
s
the
word “voluntary”
from
the
reference to employee contributions to any pension or retirement account in the definition of gross income in
s.
DCF 150.02
(13)
.
The
proposed
rule
clarifies
that a payer may only receive credit for
Social Security
Disability
or Old Age
Insurance
derivative benefits for
a child in
a primary placement case if the benefits are
being received by the custodial parent.
Additionally, i
n shared placement cases,
the
proposed rule provides
that
the child’s benefit
is
based on the parent’s percentage of shared care-taking responsibility.
The
proposed rule applies
t
he same methodology recommended for
Social Security
Disability
or Old Age
Insurance
derivative benefits
to the calculation of child support in cases where the parents are receiving
adopt
ion assistance.
The
proposed rule
clarifies that
veteran’s
disability
benefits
are to be
considered
income available for child support.
Low-
Income Cases
The
proposed
rule retains the current formula for low-income payers at
s.
DC
F
150.04
(4)
but modifies the language for imputing income based on earning capacity in
s.
DCF 150.03
(3)
to provide for the court’s consideration of a range of 10-35 hours per week based on the availability of work in the p
arent’s community for similarly
situated individuals.
The
proposed
rule p
rovides
that the low-
income formula may
be c
ombined with the shared, serial,
and split placement formulas.
The
proposed
rule
adds
language suggesting
job search or
a work experience program
,
such as Children First
,
as an alternative
to
imputing income in low-
income cases.
The proposed rule clarifies
that the amounts in the low income and birth costs charts apply to incomes at or above 75% of the federal poverty level. The
proposed rule permits the court to
exercise its discretion in setting support for payers with incomes below 75% of the federal poverty
guidelines
.
Serial-
Family Cases
The
proposed
rule retains the current serial family formula in
s.
DCF 150.04
(1)
with a clarification that serial family parents may be eligible for applica
tion of the low-
income formula if multiple child support obligations put their income below the low income threshold.
The
proposed
rule
clarifies
the serial family formula as follows:
•
A
parent subject to an existing child support order is a serial family payer for the purpose of calculating a support obligation for children from a subsequent family under the pro
visions of this section and s.
DCF
150.04
(2)
.
•
A
parent with a legal obligation to support a child in an intact family is a serial family payer for the purpose of calculating a support obligation for children from a subsequent family under the provisions of this section and
s.
DCF 150.04
(2)
.
•
A
parent subject to a shared placement order is a serial family payer for the purpose of calculating a support obligation for children from a subsequent family under the provisions of this section and
s.
DCF 150.04
(2)
.
Shared
-Placement
Cases
The
proposed
rule require
s
that variable costs
shared by the parties be determined based on a list of variable costs agreed to by the parties or ordered by the court based upon lists furnished by the
parties.
The proposed rule requires
that transportation costs related to the exercise of physical placement be included in that list.
The
proposed
rule require
s
that a change in circumstances to modify a child support order should be a change in the circumstances of the parties and not a change in variable costs alone.
The
proposed
rule retains the current formula fo
r calculating support in shared-placement
cases in
s.
DCF 150.04
(2)
using overnights or their equivalent as a measure of shared time but provide
s
more examples of equivalent care that include a pattern of time spent with the children
that involves blocks of time that may be less than overnight. Consideration of equivalent care requires that the
time spent with the children
i
nclude a requirement that
a meal be provided.
The
proposed rule repeals
the provision allowing
variable cost orders to be rolled into the child support amount.
The
proposed
rule provide
s
that the shared-placement
formula
may
be combined with the low income formula where applicable.
Medica
l Support
The
proposed
rule c
hange
s
the measure of reasonable cost from 5% of each parent’s gross monthly income to 10% of the gross monthly income of each parent and applies
it to the full cost of the policy as opposed to the incremental cost of adding the
child(
ren
).
The
proposed
rule p
rovide
s
that a contribution toward the cost of insurance for the children from the custodial parent should not exceed the incremental cost to add the children to the policy.
The proposed rule adds language
requiring the court to consider the
effect of the dependency exemption on health insurance responsibility.
The proposed rule clarifies
that
public programs like Badger Care are acceptable sources of medical support that meet federal requirements for minimal essential coverage
when private health insurance is not available at reasonable cost
.
The
proposed
rule provide
s
that
r
ecovery of birth costs is inappropriate in cases where the alleged father is a member of an intact family that includes the mother and the subject child, and the father’s income, if any, contributes to the support of the child.
High-
Income Cases
The proposed rule
retains the existing child support guidelines for payers with annual incomes up to $150,000. The percentage reductions for payers with gross annual incomes between $150,000 and $300,000
will
remain at the levels in the
current
rule
,
which represents 60% of the amount due under the Percentage of Income Standard. A sliding scale is
proposed
to
further reduce the existing percentages in DCF 150
.04(5
)(
d),
beginning at $300,000 annual
gross income and reaching an am
ount that repr
e
sents 30% of the current standard for gross annual incomes of $500,000 and above.
The proposed rule
provides discretion to determine support for incomes above $500,000 annually.
The proposed rule
provides that the high-
income formula may be combined with the shared, serial
,
and split placement formulas.
Summary of Factual Data and Analytical Methodologies
The proposed rule revisions were developed in response to recommendations from the Child Support Guidelines Advisory Committee established to provide guidance to the Department on revisions to the state policy regarding the guidelines used to determine child support payments and the application of those guidelines in special circumstances. This report is the result of the extensive deliberations of the advisory committee composed of representatives of the courts, the Wisconsin Bar, community-based organizations and county child support agencies, state legislators, citizens and the Department of Children and Families.
The proposed rule revisions focus on five areas: high income formula, low income formula, shared time formula, serial family formula and medical support guidelines. Additionally, proposed rule revisions make some clarifications to the definition of gross income.
Summary of Related Federal Requirements
Wisconsin’s Percentage of Income Standard was created to comply with federal requirements in
45 CFR 302.56
(a)
that
require that
as a condition of
approval of its State plan, all s
tate
s
must
establish one set of guidelines by law or by judicial or administrative action for setting and modifying child support award amounts within the State.
T
he methodology to be used in calculating support orders
is
at state discretion.
45 CFR 302.56
(e) also requires states to review, and revise, if appropriate, the guidelines established under paragraph (a) of this section at least once every four years to ensure that their application results in the determination of appropriate child support award amounts.
Comparison to Rules in Adjacent States
Iowa, Minnesota and Michigan use an Income Shares Model to establish child support. Illinois uses a Percentage of Income Standard.
T
he
amount of support calculated under Wisconsin’s Percentage of Income Standard i
s consistent with that of neighboring states.
Effect on Small Business
The rule will
not
affect small business
es
as defined in s.
227.114 (1)
, Stats.
Analysis Used to Determine Effect on Small Business or in Preparation of Economic Impact Analysis
The proposed rule revisions apply to temporary and final orders for child support or family support of a marital or non
-
marital child in any action affecting the family under
ch.
767
,
Stats.,
including stipulated
child support settlements under
s.
767.34
, Stats.
Agency Contact Person
Kris Randal
Division Administrator
Division of Family and Economic Support
kris.randal@wisconsin.gov
(608)
422-6187
|
Place Where Comments are to be Submitted and Deadline for Submission
Comments may be submitted to
Elaine
Pridgen
,
Department
of Children and Families, 201 E. Washington Avenue, P.O. Box 8916, Madison, WI, 53708-8916 or
dcfpublichearing@
wisconsin.gov
. The comment deadline is
December 20, 2016.
SECTION 1. DCF 150.02
(10) is amended to read:
DCF 150.02
(10
)
“
Equivalent care”
means a period of time during which the parent cares for the child that is not overnight, but is determined by the court to require the parent to assume the basic support costs that are substantially equivalent to what the parent would spend to care for the child overnight.
Blocks of time with the child of at least 6 hours
are
the
equivalent of a
half-day
.
Two
half-
day blocks
are
the
equivalent of an overnight.
SECTION 2. DCF 150.02
(13)
7.
and
8.
are
amended to read:
DCF 150.02
(13)
7. Voluntary deferred compensation, employee contributions to any employee benefit plan or profit–sharing, and
voluntary
employee contributions to any pension or retirement account whether or not the account provides for tax deferral or avoidance.
8. Military allowances and veterans
disability compensation
benefits.
SECTION 3. DCF 150.03
(3) is amended to read:
DCF 150.03
(3
)
Determining
income imputed based on earning capacity.
In situations where the income of a parent is less than the parent’s earning capacity or is unknown,
and in the absence of credible evidence to the contrary,
the court may impute income to the parent at an amount that represents the parent’s ability to earn, based on the parent’s education, training and recent work experience, earnings during previous periods, current physical and mental health, history of child care responsibilities as the parent with primary physical placement, and the availability of work in or near the parent’s community. If evidence is presented that due diligence has been exercised to ascertain information on the parent’s actual income or ability to earn and that information is unavailable, the court may impute to the parent the income that a person would earn by working
10 to
35 hours per week
based on the availability of work in or near the parent’s community for individuals in similar circumstances of the parent,
for the higher of the federal minimum hourly wage under
29 USC 206
(a) (1) or the state minimum wage in s.
DWD 272.03
.
As an alternative to imputed income, the court may order the parent who is not a custodial parent to
search for a job or
participate in
a work experience
and job training program
, including the Children First program under
s.
49.36
, Stats
.
If a parent has gross income or income modified for business expenses below his or her earning capacity, the income imputed based on earning capacity shall be the difference between the
parent’s
earning capacity and the parent’s gross income or income modified for business expenses.
SECTION 4. DCF 150.03
(5) is
amended to read:
DCF 150.03
(5)
Adjustment for child’s social security
.
(a)
The court may
include
consider
a child’s benefit
under
42 USC 402
(d) based on a
parent
’s
entitlement to federal disability or old-age insurance benefits under
42 USC 401
to
433
in the parent’s gross income
and adjust a pa
yer
’s child support obligation by subtracting the amount of the
social security
child’s
benefit
received by the payee.
In no case may this adjustment require the payee to reimburse the paye
r for any portion of the child’s benefit
.
If the payer is receiving the
child’s
benefit, the support
amount
is
either the percentage standard applied to the payer’s income or the amount of the
child’s
benefit
,
whichever is greater.
SECTION 5. DCF 150.03
(5)
(b
)
and (Note) are
created to read:
DCF 150.03 (5)
(b
)
If the shared placement guid
elines under
s.
DCF 150.04
(2)
apply,
the
child’s benefit
is
split between the parents in proportion to the amount of time the child spends with each parent. A
dd
the proportion of the
child’s
benefit that represents the proportion of time
the child spends with the
parent
not receiving the benefit
to
the
su
pport obligation
of the parent who is receiving the
child’s
benefit
. Support shall
be determined as follows:
1.
Determine each parent’s monthly income available for child support under s.
DCF 150.03
(1) (intro.)
.
If a
parent has one or more previous child support obligations, determine the parent’s monthly income available for child support adjusted for the previous
obligations as provided in
s.
DCF 150.04
(1)
.
Include
the parent’s federal disability or old age insurance benefits
under
42 USC 401
to
433
in th
at
parent’s income, but do not
include the child’s benefit
under
42 USC 402
(d)
in either parent’s
income.
2.
Multiply each parent’s monthly income available for child support by the appropriate percentage standard under s.
DCF 150.03
(1)
.
3.Multiply
e
ach amount determined under
subd
.
2
.
by 150%.
4.
Multiply the amount de
termined for each parent in
subd
.
3
.
by the proportion of time that the child spends with the other parent.
5.
Multiply the amount of the child’s benefit
b
y the proportion of the time the child spends with the parent who is not receiving the child’s benefit
.
6.
Add the amount in
subd
.
5
.
to
the child suppo
rt obligation calculated in
subd
.
4
.
for the parent who is receiving the child’s benefit.
7.
Offset the resulti
ng amounts against each other.
The parent with the
greater child support obligation
is the shared-placement payer.
The shared-placement payer shall pay either the
greater
of the amount determined in
this subsection
or the amount determined using the appropriate percentage standard under s.
DCF 150.03
(1)
.
Note:
The following example shows how the child support obligation is determined for
a shared-placement parent who receives a child’s benefit
under
42 USC 402
(d)
:
Assumptions:
Two children
Parent A has placement 146 days or 40% of the year.
Parent B has placement 219 days or 60% of the year.
Parent A’s current monthly income available for support is $2000.
Parent B’s current monthly income available for support is $2500
Parent B receives a
$1000
per month
child’s benefit under
42 USC 402
(d)
based
on Parent A’s entitlement to federal disability or old-age insurance benefits under
42 USC 401
to
433
.
Calculation:
Parent
A
Parent B
Monthly Income Available
For Child Support
$2,000 $2,500
Monthly Income Available
For Child Support
x
Percentage Standard for
$2,000 $2,500
Two Children
x 25% = $500
x 25% = $625
Amount x 150%
$500 $625
x
150% = $750
x 150% = $937.50
Amount x Proportion
Of Time Spent With
$750
$937.50
Other Parent
x 60% = $450
x 40% = $375
Child’s
Benefit x Proportion
Of Time Spent With
Parent
Not
receiving
the
$1,000
Child’s benefit
x 40% = $400
Add Last Two
$375
Amounts
+$400 =
$775
Offset
$775-$450 = $325
(Parent B)
SECTION 6
. DCF 150.03
(5m)
and (Note) are
created to read:
DCF 150.03 (5m)
ADJUSTMENT FOR ADOPTION ASSISTANCE
.
The court may
consider
adoption assistance received by either parent under s.
48.975
(3)
(a)
,
Stats.
If the shared
placement guidelines under s.
DCF 150.04
(2)
apply,
the adoption a
ssistance should be sp
lit between the parents in proportion to the amount of time the child spends with each parent.
A
dd
the proportion of the
adoption assistance
that represents the proportion of time
the child spends with the
parent
not receiving the
adoption assistance
to
the
su
pport obligation of the parent who is receiving the
adoption assistance
. Support shall
be determined as follows:
(a)
Determine each parent’s monthly income available for child support under s.
DCF 150.03
(1)
(intro.)
.
If a parent has one or more previous child support obligations, determine the parent’s monthly income available for child support adjusted for the previous
obligations as provided in
s.
DCF 150.04
(1)
.
D
o not
include the
adoption assistance
under
s.
48.975 (
3)
(a)
,
Stats.
,
in either parent’s
income.
(b)
Multiply each parent’s monthly income available for child support by the appropriate percentage standard under s.
DCF 150.03
(1)
.
(c)
Multiply e
a
ch amount determined under par. (b)
by
150%.
(d)
Multiply the amount de
t
ermined for each parent in par. (c)
by
the proportion of time that the child spends with the other parent.
(e)
Multiply the amount of the
adoption assistance
b
y the proportion of the time the child spends with the parent who is not receiving the child’s benefit
.
(f)
Add the amount in
par. (e)
to
the child suppo
r
t obligation calculated in par. (d)
for
the parent who is receiving the
adoption assistance
.
(g)
Offset the resulti
ng amounts against each other. The parent with the
greater child support obligation
is the shared-placement payer.
The shared-placement payer shall pay either the lesser of the amount determined in
this subsection
or the amount determined using the appropriate percentage standard under s.
DCF 150.03
(1)
.
Note:
Section
46.10
(14)
(cm)
1
.
,
Stats.,
caps the amount that adoptive parent/s may be ordered to pay for child support to the amount of the adoption assistance.
SECTION 7
. DCF 150.04
(1)
(a) and
(b) 8
.
are
amended to read:
DCF 150.04
(1
)
(
a)
Applicability.
This subsection applies only if
the additional child support obligation incurred by a parent is a result of a court order and
the support obligation being calculated is for children from a subsequent family or subsequent paternity judgment or acknowledgment. A parent may not use the provisions of this subsection as a basis for seeking modification of an existing order based on a subsequently incurred legal obligation for child support.
A parent with a legal obligation to support a child in an intact family is a serial family payer for the purpose of calculating a support obligation for children from a subsequent family under the provisions of this
sub
section and
s.
DCF 150.04
(6) (c)
.
(b)
8. Multiply the appropriate percentage under s.
DCF 150.03 (1)
for the number of children subject to the new order by the final adjusted monthly income available for child support de
termined in either
subd
. 6. or 7.
to
determine the new child support obligation or if applicable, determine the new child support obligation under sub. (2), (3), (4), or (5).
If multiple child support obligations reduce a serial-family parent’s income to a level set forth in the schedule in Appendix C, the court may combine the provisions of
this
sub
section
with the provisions for determining the support obligation of a low-income payer under
s.
DCF 150.04
(4)
.
SECTION 8
. DCF 150.04
(2)
(a)
1
.
is
amended to read:
DCF 150.04
(2)
(a)
1.
Both parents have court-ordered periods of placement of at least 25% or 92 days a year.
When calculating periods of placement based on “equivalent care” under DCF 150.02 (1
0
), the total number of
overnights
may exceed 365.
The period of placement for each parent shall be determined by calculating the number of overnights or equivalent care ordered to be provided by the parent and dividing that number by
365
the total number of
overnights
in a year
. The combined periods of placement for both parents shall equal
the total number of
overnights
.
SECTION 9
. DCF 150.04
(2)
(b)
5
.
and
6
.
are
amended to read:
DCF 150.04
(2)
(b)
5. Offset resulting amounts under
subd
. 4. against each other. The parent with a greater child support obligation is the shared-placement payer. The shared-placement payer shall pay the lesser of the amount determined under this
subd
.
or
the amount determined using the appropriate percentage standard under s.
DCF 150.03 (1)
. If the shared-placement payer is also a low-income
or high-income
payer,
the child support obligation may be the lesser of the amount determined und
er this
subd
.
or
under sub. (4)
the
c
ourt may combine the provisions
of
ei
ther sub. (4)
or
(5) with the provisions of this section
.
6. In addition to the child support obligation determined under
subd
. 5., the court shall assign responsibility for payment of the child’s variable costs in proportion to each parent’s share of physical placement,
with due consideration to a disparity in the parents’ incomes
and based upon a detailed list of the variable costs provided by the parties.
Due c
onsideration sha
ll be given to
a disparity in the parents’ income and
the transportation costs associated with each parent’s respective periods of physical placement.
The court shall direct the manner of payment of a variable cost order to be either between the parents or from a parent to a third-party service provider. The court shall not direct payment of variable costs to be made to the department or the department’s
design
e
e
.
,
except as incorporated in the fixed sum or percentage expressed child support order
.
SECTION 10
. DCF 150.04
(2)
(b)
7
.
is
created to read:
DCF 150.04
(2)
(b)
7.
A change in the child’s variable costs shall not in and of itself be considered a substantial change in circumstances sufficient to justify a revision of a judgment or order under s.
767.59
, Stats.
SECTION 11
. DCF 150.04
(2)
(b)
(
Note
)
is amended to read:
DCF 150.05
(2)
(b)
Note:
The following example shows how to calculate the child support obligations of shared-placement parents.
Number of children: Two
Parent A:
$2,000 monthly income available for child support
Parent A has c
ourt-ordered placement of the child for 219 days a year or 60%.
Parent B:
$3,000 monthly income available for child support
Parent B has c
ourt-ordered placement of the child for 146 days a year or 40%.
1. Monthly income available for child support
|
$2,000
|
$3,000
|
2. Monthly income available for child support X percentage standard for two children
|
$2,000 X 25% = $500
|
$3,000 X 25% = $750
|
3. Amount in 2. X 150%
|
$500 X 150% = $750
|
$750 X 150% = $1125
|
4. Amount in 3. X the proportion of time that the child spends with the other parent
|
$750 X 40% = $300
|
$1125 X 60% = $675
|
5. Offset
|
$675 - $300 = $375
|
|
6. Court also assigns responsibility for payment of the child’s variable costs.
|
Manner of payment is between the parents or from a parent to a third-party service provider,
except as incorporated in the fixed sum or percentage expressed child support order
.
|
Example of equivalent care:
Number of children: Two
Parent A: $2,000 monthly income available for child support
Parent A has c
ourt-ordered placement of the child 271 days a year or 74%.
Parent B: $3,000 monthly income available for child support
Parent B has c
ourt-ordered placement of the child 94 days a year or 26%.
Parent B
also
provides day care 4 days a week from 3 pm – 9 pm and
Provides dinner to the children 46 weeks per year.
(4) 6 hour blocks
per week = 2 overnights X 46
weeks
= 92 overnights
per year
Total number of overnights
= 457
Parent A = 59%
Parent B = 41%
Parent
A
Parent B
1. Monthly income
$2,000
$3,000
available
for child support
2. Monthly income
available
for child support
X percentage standard for
$2,000 X 25% = $500
$3,000 X 25% = $750
two
children
3. Amount in
2. X 150%
$500 X 150% = $750
$750 X 150
%
= $1125
4. Amount in 3. X the
$750 X 41% = $307.50
$1125X59%=$663.75
proportion
of time that the
child
spends with the other
parent
5. Offset
$663.75 - $307.50= $367.50
6. Court also assigns
Manner of payment is between the parents or from
responsibility
for payment
a parent to a third-party service provider
.
of
the child’s variable
costs
.
SECTION 12
. DCF 150.04
(5) (a) is amended to read:
DCF 150.04
(5)
(a
)
The
payer’s full monthly income available for child support shall be considered in determining the payer’s child support obligation. The court may apply the reduced
percentages under pars. (c)
,
and
(d)
and (e)
to income at the indicated levels.
SE
CTION 13
. DCF 150.04
(5)
(e)
and (Note) and (f) are
created to read:
DCF 150.04
(5)
(e)
The court may use the monthly support amount provided in the schedule in Appendix E as the support amount for the portion of a payer’s monthly income available for child support that is greater than or equal to $25,000 and less than or equal to $41,666.
Note:
A monthly income of $25,000 is an annual income of $300,000. A monthly income of $41,666 is an annual income of approximately $500,000. The percentages that apply to income between $300,000 and $500,000 are between 30% and 60% of the full percentage standards
in Appendix A
.
(f) Support may be established at the discretion of the court for that portion of a payer’s monthly income available for child support that is greater than or equal to $41,666.
SECTION 14
. DCF 150.04 (6) (c) is created to read:
DCF 150.05 (6)
(c) Sha
red placement and seria
l family parent. If a parent is a serial family parent
, including a serial family parent in an intact family,
and a child support obligation is being established for that parent’s children from a subsequent family or a s
ubsequent paternity judgment in
whcih
both parents will have periods of placement of at least 25% or 92 days a year,
t
he child support obligations ma
y be determined as follows:
1. Determine
the first child support obligation by multiplying the appropriate percentage under DCF 150.03(1) by the
parent’s monthly income available for child su
pport.
2
. Determine the
child support obligation for the subsequent family as follows:
(a) Adjust the monthly income available for child support by subtracting the support for the first legal obligation under
subd
. 1.
From
the parent’s monthly income available for child support under sub. 1.
3. Multiply the appropriate percentage under s.
DCF 150.03 (1)
for the number of children subject to the new order by thee final adjusted monthly income available for child support determined under
subd
. 2.
to
determine the new child support obligation.
NOTE:
The following example shows how the child support obligation is determined for a serial-family parent whose
additional
child support
obligation
for a subsequent family and both parents will have periods of placement of at least 25% or 92 days.
Assumption:
Parent A: $2000
monthly income
available for child support
Parent A has c
ourt ordered placement for 219 days a year or 60%
Parent A
has a child from a previous relationship living with them
Parent B: $3000 monthly income available for child support
Parent
B has
c
ourt ordered placement for 146 days a year or 40%
Calculation:
Parent A’s monthly income available for child support
$2000
Parent A’s first legal obligation for support to a child
In an intact family = 17%
$340
Adjust Parent A’s monthly income available for
Child support
$2000
-
340
Adjusted monthly income available for support $1660
Determine support for the second legal obligation
(
shared
placement):
1. Monthly income available for child support
|
$1,660
|
$3,000
|
2. Monthly income available for child support X percentage standard for two children
|
$1,660 X 25% = $415
|
$3,000 X 25% = $750
|
3. Amount in 2. X 150%
|
$415 X 150% = $622.50
|
$750 X 150% = $1125
|
4. Amount in 3. X the proportion of time that the child spends with the other parent
|
$622.50 X 40% = $249
|
$1125 X 60% = $675
|
5. Offset
|
$675 - $249 = $426
|
|
SECTI
ON 15
. DCF 150.05 (1)
(a)
is amended to read:
DCF 150.05
(1)
(a
) In
this section, “
private health insurance" does not include a medical program under
subch
.
IV
or
V of
ch.
49
,
Stats.
,
including the
BadgerCare
Plus program under
s.
49.471
, Stats.
SECTION 16
. DCF 150.05 (1) (a) (Note) is repealed.
SECTION 17
. DCF 150.05 (1)
(b) 2.
and
3.
are
amended to read:
DCF 150.05 (1)
(b)
Except as provided in par. (d)
and
(e),
the court may order either or both parents to enroll a child in a private health insurance plan that is accessible to the child and available at a reasonable cost, as follows:
2.
The court may consider a private health insurance plan to be available at a reasonable cost if the cost
to enroll the child or children
of the policy
does not exceed
5
%
10
% of the insuring parent’s monthly income available for child support and would cover hospitalization and other medical costs without large out-of-pocket deductibles or copayments.
In applying
t
his
5
%
The
10%
standard
applies to the full cost of the health insurance, including
, the cost to enroll the child or children in a private health insurance plan is the cost to add the child or children to existing coverage or the difference between
the cost of self-only coverage and the cost to that parent after adding the child or children.
3. The court may order the non-insuring parent to contribute to the cost to enroll the children in a private health insurance plan in an amount that does not exceed
5
%
10%
of the non-insuring parent’s monthly income available for child support.
A contribution to the cost to enroll the children may not exceed the cost to add the child or children to existing coverage. If the parent ordered to enroll the children does not have self-coverage, a contribution to the cost to enroll
the child or
children may not exceed the difference between the cost of self-only coverage and the cost to the insuring parent to add the child or children.
SECTION 18
. DCF 150.05 (1) (d) 2 is amended to read:
DCF 150.05 (1)
(d)
2
Responsibility
for a contribution to the cost of the other parent’s premium for the
BadgerCare
Plus program under .s.
49.471
, Stats., unless the parents income is below 150% of the federal poverty
level
guidelines
.
The
BadgerCare
Plus program is an acceptable source of medical support that meets federal requirements for minimal acceptable coverage when there is no private health insurance plan that meets the requirements of
subd
. (b).
The
court may incorporate responsibility for a contribution to the cost of the premium as an upward or downward adjustment to a payer’s child support obligation.
SECTI
ON 19
. DCF 150.05 (1)
(g
)
and (Note) are
created
to read:
DCF 150.05 (1)
(g)
The
court shall consider the impact of the dependency exemption on the availability of insurance in the marketplace and the i
mposition of penalties
under
the Affordable Care Act,
42 USC 18091
.
Note:
Enforcement under the Affordable Care Act (ACA)
is tied to the tax household. Subsidized coverage is only available under the ACA to members of the tax household.
The following example shows how to apply the reasonable cost standard.
Parent A:
$4,000 monthly inc
ome available for child support
10% = $400
Parent B: $2,500 monthly incom
e available for child support
10% = $250
10% combined monthly income
=
$
650
Parent
A
Employer sponsored insurance:
$350/mo
nth
self-only coverage
$210
/
month
to add
the
child or
children
$560 total policy cost
($560 < $650. Therefore, the total cost of the policy exceeds 10%
. T
his is considered reasonable)
Parent A may be ordered to enroll th
e
child or children
and contribute
$400.00/
month
toward
the
cost (10% of income)
Parent B may be
ordered to contribute $16
0
/
month
toward the cost.
(
The m
aximum amount Parent B may be ordered to contribute is $210/
month
)
If Parent A is ordered to pay child support, parent B’s contribution to the cost of health insurance will occur as a downward deviation to the cash monthly support amount.
SECTION 20
. DCF 150.05 (2)
(a) is amended to read:
DCF 150.05
(2
)
(a
)
In
this subsection, “birth cost judgment" means an order establishing the amount of the father’s obligation to pay or contribute to the reasonable expenses of the mother’s pregnancy and the child’s birth under s.
767.89 (3) (e)
, Stats.
Recovery of birth costs is
inappropriate
in cases where the alleged father is a member of an intact
family
that includes the mother and the subject child
at the time paternity or support is
established
,
and
the father’s income, if any, contributes to the support of the child.
SECTION 21
.
DCF 150, Appendix E, is created to read:
SECTION 22
.
EFFECTIVE DATE.
This rule shall take effect the first day of the month following publication in the Wisconsin Administrative Register as provided in s.
227.22 (2) (intro.)
, Stats.
