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If you have children and you are considering divorce or separation; custody, parenting time and child support are likely your primary concerns going into the potential divorce or separation.  Child support is based upon a formula but that begs the question of what is included in the formula.  The following blog is written to broadly address whether day care expenses are included in the Michigan Child Support Formula and how that impacts child support.  If you have questions regarding child custody, visitation (or parenting time as it is called in Michigan), child support or any other family law issue, please contact us to schedule an appointment by clicking on this link or calling (248) 608-4123.

Are Day Care Expenses Included In Child Support?

The short answer is yes, day care expenses are included in the child support formula.  Depending on whether the child support payor or the recipient is responsible for paying the day care provider, there will either be additional child support or a credit/deduction for that expense.  Starting in 2025, child care expenses will be included until the end of the month when the child turns thirteen.  The day care expenses are shared by the parents, with each parent's share being determined by their share of the overall income of both parents.  For instance if one parent earns $30,0000 annually and the other parent earns $70,000 annually, then one parent would essentially be responsible for 30% of the expense and the other parent for 70%.  It does not matter whether one or both parents require the day care due to having to work, it is included in the formula and shared by the parents as outlined above..

There are some conditions regarding whether the day care costs will be included in the child support formula.  One such requirement is that the child care is required for working purposes.  For example, if a parent must work during some portion of their parenting time, say from 8:30 am to 5:00 pm on Monday and they have parenting time with the child on Mondays, then day care will be required for that time and will be included in the formula.  If the parent decides to go out in the evenings after work to relax and hires someone to watch the child, that expense would not be included in the formula or shared by the parents because it is not required for the parent to earn income.  

A point of interest is that If a relative or friend of one of the parents provides the day care, they are entitled to be paid for their time just the same as any other day care provider.  For example, if one of the grandparents is retired or there is a friend that is available (and is otherwise not objectionable as a child care provider), willing and able to provide day care for the child, then that person can be compensated for their time.  To determine how much should be paid one would look at other similar day care providers in the local area and use that or a slightly discounted rate for compensation of the relative or friend.  One should note that this expense must actually be paid to the person, it cannot be based upon what the parents are saving by getting free day care. 

This blog generally addresses this issue, if you have specific questions regarding your situation, please do not hesitate to contact us to schedule a consultation by clicking on this link or calling (248) 608-4123.