Child support guidelines revisions get the go-ahead
October 10, 2003
The long-awaited administrative rule modifying the Department of
Workforce Development (DWD) 40, Wis. Admin. Code, child support
guidelines has been allowed to advance by the legislative committees
reviewing the rule. Twice delayed by legislative requests for
modifications, the rule will now go forward with no further delays or
modifications. The guidelines are effective Jan. 1, 2004.
The rule, known in legislative parlance as Clearinghouse Rule 03-022,
includes three major components: revisions to the shared placement or
"shared-time" formula; new provisions for high-income payers; and new
provisions for low income payers. The rule also clarifies the
definitions of a number of important terms and makes other changes.
The State Bar's Family Law Section supported these changes for
several reasons, including the specific reasons that the revised
guidelines will:
- Reduce litigation for both child support and placement by lowering
the threshold placement level for applying the shared placement (or
"shared time") formula (when both parents' incomes are compared) to 25
percent and eliminating the current "cliffs" at 30 percent and 40
percent overnight placement;
- Lead to more equitable results where families have shared placement
because more payer parents would get a reduction than under the current
rule, and the incomes of both parents will be considered;
- Better define variable expenses including childcare and
extra-curricular activities (not including clothing), which should
reduce litigation;
Wisconsin's current child support standards are more than 16 years
old. They have been revised since their inception, but not for roughly
ten years.
During the legislative review process, which began in late June, the
Senate Committee on Health, Children, Families, Aging, and Long-Term
Care requested that the DWD modify the proposed child support rule to
provide for a realistic payment amount for low-income payers and review
the high-income section of the proposed rule to determine if the level
of support required is justified. The DWD agreed to make modifications
to the low-income provision and resubmitted the rule with the
modifications incorporated.
Shortly thereafter, the Assembly Committee on Children and Families
requested that the department consider, among other things, lowering the
threshold at which a payer may be subject to the high-income payer
formula. The DWD agreed to a reduction in the initial threshold from
$102,000 to $84,000 and agreed to modify provisions affecting income
imputed based on earning capacity and once again resubmitted the rule
with the modifications incorporated.
The legislative committee review period, which ended on Oct. 7, 2003,
lapsed without further modifications being requested and the guidelines
revisions will go into effect Jan. 1, 2004.
- Practitioners should note that the new rules explicitly provide that
modification of any provision of chapter DWD 40 shall not be considered
a substantial change in circumstances sufficient to justify a revision
of a judgment or order under s. 767.32, Stats.
