Child Support Paid 430-05-55-30

(Revised 04/01/08 ML3136)

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Legally obligated child support payments paid by a household member to or for a non-household member, including payments made to a third party on behalf of the non-household member (vendor payments), and arrearages are allowable deductions.  

 

Exception:

Legally obligated child support payments made to an individual outside of the household or an agency must be allowed if the child for whom the support was paid is a household member.  

 

Example:

Dad has a legal obligation to pay child support/arrearages, the children are now living with him, and he continues to pay the support to his ex-wife who is not a household member.  As dad continues to pay support, the deduction is allowed.

 

The worker must verify the following information:

1. The legal obligation.
2. The amount of the legal obligation.
3. The amount actually paid including arrearages.

 

Verification can be obtained from:

1. FACSES
2. Child support stubs
3. Documented collateral contacts
4. Wage stubs
5. Verification provided by the client from the child support website – www.childsupportnd.com

The surcharge or processing fee that employers can charge and health insurance premiums are allowable deductions.  These expenses are entered on the NOMD screen in TECS.

 

If the health insurance policy does not define how much of the premium is for each insured household member, the worker must prorate the premium amount among all members insured on the policy.  Only the prorated amount of the health insurance the household is court ordered to pay is allowed as a deduction on NOMD.  When health insurance premiums are an automatic deduction from a checking or savings account, the service fee charged by the bank is not an allowable deduction.  

 

Alimony or spousal support payments are not allowable deductions.

 

The deduction can exceed the legally obligated amount as a result of arrearages, interest or income withholding orders.

 

Initial Application

At initial application, the worker will allow the deduction based on an AVERAGE of what the household has paid if there is a payment history, (two prior consecutive months which could include the application month), taking into account any expected changes and the legally obligated amount.

 

The number of months used to arrive at the average is not limited, and is based on the prior payment history, the individual’s current circumstances and discussion with the household.  This must be documented.

 

Where child support is paid on a sporadic basis, a deduction cannot be allowed unless the worker can reasonably anticipate that a payment will be made.  This determination is based on the prior payment history (two prior consecutive months which could include the application month) for the household and documented discussion with the household.  

 

If there is no prior payment history (two prior consecutive months which could include the application month), a deduction is allowed based on what the household expects to pay, including arrearages.  The worker must look at the amount legally obligated, the individual’s current circumstances and discussion with the individual.  The amount allowed and the reason why must be documented in the casefile.

 

If there is an initial court order establishing child support, the amount allowed as a deduction is anticipated based on the court order, the individual’s current circumstances and discussion with the individual.  The amount allowed and the reason why must be documented in the casefile.

 

Recertification

At recertification, the worker must verify the amount paid in the prior certification period including arrearages and any reported change in the legal obligation.  The worker must average (sporadic or regular payments) and use that amount for the next certification period.  

 

Any child support payments the household anticipates making in the month the recertification is due must be included in the average for the new certification period.

 

Examples:

1. A household certified for January through December is recertified on December 5.  Any child support payments the household anticipates making in the month of December must be included in the average for the new certification period.  
2. A household certified for January through December is recertified on December 5.  Child support payments were made sporadically as follows:

January - $300.00

February - $150.00

May - $100.00

August - $100.00

October - $200.00

Total = $850.00

 

The household does not anticipate making any payments in the month of December.  The average amount of $70.83 ($850 divided by 12) is allowed as a monthly child support deduction for the new certification period.

 

If the household reports and verifies a change at recertification, the change must be acted on as part of the recertification process.

 

Examples:

1. At recertification on October 11, a household reports and verifies a change in their legal obligation to pay child support from $300 per month to $200 effective October 1.  The household states they have already paid the $200 for October and will continue to pay that amount each month.  When working this case for November benefits, based on discussion with the household and verification of the new amount of the obligation, $200 a month is allowed as a deduction.
2. At recertification in May, a household reports and verifies a change in the their legal obligation to pay child support.  The only child turned age 18 and is graduating from high school this month.  Effective June 1, the child support obligation stops.  When working this case for June benefits, no child support deduction is allowed.
3. At recertification in May, a household reports a change in the amount of child support they pay.  The worker must request verification of the change in child support paid.  If the change is verified, the change must be acted on and documented.  If the change is not verified, a child support deduction is not allowed.  

If there is an initial court order establishing child support, the amount allowed as a deduction is anticipated based on the court order, the individual’s current circumstances and discussion with the individual.  The amount allowed and the reason why must be documented in the casefile.  

 

Ongoing Cases

The deduction averaged at initial application or recertification will continue to be allowed for ongoing cases unless the household reports a change in the legal obligation or the legally obligated amount they pay.  If an averaged deduction is being allowed and the household reports a change in the amount of child support they pay or provides pay stubs that indicated fluctuating withholding, the averaged deduction must not be changed until recertification.  

 

If the household was not paying child support at the time of application or recertification and reports in writing or verbally to their worker that they are now paying child support, a deduction can be allowed if verified.  The pay stubs can be used as verification of the change, if not questionable.  

 

When there is an initial court order establishing child support, the amount allowed as a deduction is anticipated based on the court order, the individual’s current circumstances and discussion with the individual. The worker must document the amount used and the reason why.  This amount is used for the remainder of the certification period.

 

Providing pay stubs that indicate child support was withheld does not constitute a reported change by the household.

 

Once certified, the household is not required to report how much of the legally obligated amount they actually paid.  That information must be reported and verified at the next recertification.

 

Example:

A household was initially certified allowing a verified legal child support obligation of $300 per month.  At the time of certification, the payment history showed the household had actually paid $300 a month.  The household was certified from May through October  with an averaged deduction of $300 per month.  In August and September, the household makes payments of $100.  There is no change in the legal obligation.  As the household is not required to report a change in the amount actually paid, the $300 per month deduction allowed through October is correct.

 

Change Reporting Households

Change reporting households are required to report changes in the legal obligation, including the amount that they are legally obligated to pay.

 

If a household reports a change in the legal obligation to pay child support, the legally obligated amount of child support or reports they are now paying child support and a deduction is not currently being allowed during the certification period and the change results in an increase in benefits, or the effect on the benefit is unclear, the worker must send the F442 requesting verification.  If verification is provided, the change must be acted on.  If verification is not provided, the deduction continues to be allowed at the previously verified amount and the case is not closed.  FACSES is available as a tool to verify this information.  

 

If the change results in a decrease in benefits, the change must be acted on and verification obtained at the household’s next recertification.

 

Simplified Reporting Households

Simplified reporting households are required to report changes in the legal obligation, including the amount they are legally obligated to pay at six-month report.

 

If the household reports a change in the legal obligation to pay child support, the legally obligated amount of child support or when a household reports they are now paying child support and a deduction is not currently being allowed at six-month report, the change must be acted on regardless of the effect on the benefit.  

 

If the household reports a change in the legal obligation to pay child support, the legally obligated amount of child support or when a household reports they are now paying child support and a deduction is not currently being allowed during the certification period and the change results in an increase in benefits, or the effect on the benefit is unclear, the worker must send the F419 requesting verification.  If verification is provided, the change must be acted on.  If verification is not provided, the deduction continues to be allowed at the previously verified amount and the case is not closed.  FACSES is available as a tool to verify this information.  

 

If the household reports a change in the legal obligation to pay child support or the legally obligated amount of child support that results in a decrease in benefits, the change is not acted on until six-month report or recertification, whichever occurs first.