Effective as of March 28, 2019, House Bill 366 has changed the child support guidelines. The guidelines previously in effect have been the same since 1992.
The previous child support guidelines were based upon data collected in the 1980’s. Considering all that has changed in that time it was decided that this information be updated based on more recent data. Previously the child support guidelines could only compute up to $150,000.00 in household income. The new guidelines raised this household income amount to $336,000.00; more than double the previous amount. In addition to raising the income amount, the minimum payment amount was raised. The previous minimum payment amount was $50.00; the current amount was raised to $80.00.
One of the major changes being implemented under HB 366 is the self-sufficiency reserve. Under the previous standards there was no self-sufficiency reserve. This reserve protects the interest of the Obligors by ensuring that they have the means to pay for basic living expenses after paying support. Implementing the self-sufficiency reserve allows the Obligor to pay a reasonable child support and still be able to pay living expenses without having to borrow funds.
Another major change taking place under HB 366 is the Health Insurance standard. Previously it was known that one or both parents would be the health insurance Obligor if the health insurance was available at a reasonable cost. It is now generally presumed that the Obligee will be the parent to provide coverage. There are, however, instances where this presumption is not the case. For example, if the Oligor already has health insurance on the children for a reasonable cost or can obtain for a reasonable cost, the Obligor may be in charge of the health insurance.
Parenting time adjustments have also changed under the new Bill. Previously it was believed that the guidelines accounted for parenting time, however, they did not. The Bill now provides for a 10% parenting time adjustment for standard parenting time orders (roughly every other weekend or 90 overnights a year). These numbers can be deviated by the Court.
To learn more about the new House Bill 366, check it out here. Or, contact our office to speak with an attorney regarding how these changes could affect your situation.