Change in Indiana Child Support Guidelines

Last fall, the Indiana Supreme Court adopted revisions to the Indiana Child Support Guidelines which became effective January 10, 2010. The revisions address a host of issues such as changes in the range of support for both higher and lower income levels, the calculation of Social Security benefits for both a disabled parent and a child receiving Social Security benefits, negative child support and new health insurance calculations.

The prior child support guidelines stopped on the calculator at a gross weekly income of $4,000. Any amount of $4,000 per week required practitioners to use a complicated mathematical formula to derive any additional support. This resulted in persons with substantially larger incomes being ordered to pay a much lower child support obligation in comparison to other states. For example, under the old guidelines, a person making $10,000 per week would pay support in the amount of $412.38 per week. Now, under the new guidelines that same person would be paying $712.00 per week.

The new guidelines also address the issue of people who make less income. The prior guidelines mandated a minimum support order of $25.00 per week. The new guidelines start at a support amount of $12.00 per week.

When determining gross income, Guideline 3A states that a disabled parent’s gross income must include the social security disability benefits paid for the benefit of the minor child. Survivor benefits are not to be included. Supplement Security Income (SSI) is treated differently than Social Security retirement as SSI is means tested and therefore cannot be included in a parent’s gross income. Receipt of Social Security retirement income is still discretionary with the Court.

Under the old guidelines, the non-custodial parent was to pay child support to the custodial parent. There were, however, times when the income of the custodial parent led to a situation where the child support obligation became a “negative” child support obligation. In other words, according to the Child Support Obligation Worksheet (CSOW) the custodial parent should have been paying child support to the non-custodial parent. Case law in Indiana did not necessarily allow for negative child support. The new guidelines now allow the Courts to order a custodial parent to pay a non-custodial parent child support if the CSOW so indicates.

A major change in the guidelines also addresses the issue of health insurance coverage and payment of health insurance premiums. As a result of Federal legislation, parties and attorneys will now be required to prepare a separate health insurance worksheet to be submitted with the CSOW. The purpose of this worksheet is to determine whether it is reasonable under the guidelines to require on or both of the parents to carry health insurance. For purposes of determining what is reasonable, the worksheet indicates that payment of a premium in excess of 5% of that party’s gross weekly income would not be considered reasonable.

If you are considering a change in the child support obligation you either pay or receive, you should familiarize yourself with the new guidelines.