Modifications, Review and Adjustment in Tough Economic Times May 25, 2011 Nancy Thoma Groetken, Regional Program Manager Office of Child Support Enforcement.

Modifications, Modifications, Review and Review and

Adjustment in Adjustment in Tough Economic Tough Economic

TimesTimesMay 25, 2011May 25, 2011Nancy Thoma Groetken, Regional Program ManagerNancy Thoma Groetken, Regional Program Manager

Office of Child Support Enforcement Region VIIOffice of Child Support Enforcement Region [email protected]@acf.hhs.gov

Michaelene M. Machowiak, Deputy Prosecuting AttorneyMichaelene M. Machowiak, Deputy Prosecuting AttorneySt. Joseph Co. Prosecutor’s Office, South Bend, IN St. Joseph Co. Prosecutor’s Office, South Bend, IN

574-235-9786, [email protected] 574-235-9786, [email protected]

Maria R. Mancuso, ESQ., Child Support Hearing OfficerMaria R. Mancuso, ESQ., Child Support Hearing Officer

Administrative Office of the Courts, Administrative Office of the Courts,

Hughes Justice Complex, Trenton, NJHughes Justice Complex, Trenton, NJ

P: 609-984-0486 E: P: 609-984-0486 E: [email protected]@judiciary.state.nj.us

Moderator: Scott Cade, Regional Vice President, ACS Inc. Moderator: Scott Cade, Regional Vice President, ACS Inc.

1

The Demand for The Demand for Modification Modification

has Never Been Greaterhas Never Been Greater Prolonged economic downturn with Prolonged economic downturn with

sustained unemployment near 10%.sustained unemployment near 10%. Constricting State budgets impacting Constricting State budgets impacting

staffing levels and State priorities.staffing levels and State priorities. Extended tours of duty for military Extended tours of duty for military

service members, specifically service members, specifically Reservists.Reservists.

Shifts in attitude towards incarcerated Shifts in attitude towards incarcerated non-custodial parents.non-custodial parents.

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Timely Review and Timely Review and Adjustment Adjustment is Critical is Critical Change in employment and the loss or Change in employment and the loss or

reduction of income for NCPs can lead to: reduction of income for NCPs can lead to: increased increased arrearsarrears, , a a reduction in the rate of collection of current reduction in the rate of collection of current

support collected support collected – some payors who lose their jobs – some payors who lose their jobs are quick to find another, almost always lower are quick to find another, almost always lower paying. They become partial-payors of current paying. They become partial-payors of current support but, with review and adjustment, could support but, with review and adjustment, could return to meeting their current obligation 100%. return to meeting their current obligation 100%.

use of stronger remedies use of stronger remedies to enforce order to enforce order compliance, compliance,

migration to the underground economy migration to the underground economy to avoid to avoid the child support system.the child support system.

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Timely Review and Timely Review and Adjustment Adjustment is Criticalis Critical

The poor get hit first, worst and longestThe poor get hit first, worst and longest. . Economic recovery will come more quickly to a Economic recovery will come more quickly to a NCP who is offered some relief from a CS NCP who is offered some relief from a CS payment he/she cannot afford while payment he/she cannot afford while unemployed. unemployed.

Timely adjustment of child support Timely adjustment of child support aids the aids the entire family in process of recovering entire family in process of recovering from from bad times to better times. bad times to better times.

Debt is bad Debt is bad for the debtor and the one owed for the debtor and the one owed the debt. Piled up debt makes recovery harder the debt. Piled up debt makes recovery harder for families – leads to bad relationships, for families – leads to bad relationships, homelessness, and other complex issues.homelessness, and other complex issues.

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Timely Review and Timely Review and Adjustment Adjustment is Criticalis Critical If treated fairly when modification is If treated fairly when modification is

requested and support is set at an requested and support is set at an appropriate amount, research shows an appropriate amount, research shows an NCP is more likely to pay. NCP is more likely to pay.

When reducing child support amounts, we When reducing child support amounts, we also need to be there when it is time to raise also need to be there when it is time to raise it back up. it back up.

Building trust with an NCP and the CP is Building trust with an NCP and the CP is critical - when the time comes to modify critical - when the time comes to modify upward an NCP may be much more likely to upward an NCP may be much more likely to cooperate if they believe they will again be cooperate if they believe they will again be treated fairly. treated fairly.

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Obstacles and PitfallsObstacles and Pitfalls Complicated forms Complicated forms – Hard to navigate – Hard to navigate

pro se, especially for those who may not pro se, especially for those who may not be English-proficient or are illiterate. be English-proficient or are illiterate. There is some movement toward There is some movement toward simplification by Courts. Some simplification by Courts. Some resistance in standardizing forms or resistance in standardizing forms or rewriting in plain English rewriting in plain English

Complicated process Complicated process – Modification is – Modification is often a long and drawn out process. Two often a long and drawn out process. Two step process of review and then step process of review and then adjustment adds time and complexity. adjustment adds time and complexity.

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Obstacles and PitfallsObstacles and Pitfalls Complicated Child Support Guidelines Complicated Child Support Guidelines – –

Approaches to simplify/streamline review and Approaches to simplify/streamline review and adjustment can be foiled by detailed guideline adjustment can be foiled by detailed guideline needs needs

Need lots of financial data and expense Need lots of financial data and expense information from both parents. Can we use less information from both parents. Can we use less detail and still get to a similar/equitable bottom detail and still get to a similar/equitable bottom line? line?

Complicated to get into the door Complicated to get into the door –– Complex rules defining how to qualify for a review Complex rules defining how to qualify for a review

can be misunderstood by workers and parents can be misunderstood by workers and parents Need to encourage application and do outreach Need to encourage application and do outreach

Expensive to access the courts for a traditional Expensive to access the courts for a traditional modificationmodification

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Obstacles and PitfallsObstacles and Pitfalls Resources are stretchedResources are stretched

Availability of court docket time Availability of court docket time Lack of/use restrictions of federal funds for legal Lack of/use restrictions of federal funds for legal

services (federal legislation issues - LSC prohibited services (federal legislation issues - LSC prohibited from using federal funds for certain activities -1996 from using federal funds for certain activities -1996 laws) laws)

Public legal services workload dramatically Public legal services workload dramatically increased due to housing cases (foreclosures), increased due to housing cases (foreclosures), bankruptcy, and immigration - Legal Services bankruptcy, and immigration - Legal Services usually refer requests for review and modification usually refer requests for review and modification to CSEto CSE

Impact on Clerk of Courts in “helping” the NCP Impact on Clerk of Courts in “helping” the NCP through the pro se process; many courts are doing through the pro se process; many courts are doing furloughsfurloughs

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Obstacles and PitfallsObstacles and Pitfalls Whose best interests? Whose best interests?

Downward modifications not in best interest of Downward modifications not in best interest of childchild

Need to balance the needs of the CP for support Need to balance the needs of the CP for support during difficult financial timesduring difficult financial times

Many NCPs are unaware they can apply for IV-D Many NCPs are unaware they can apply for IV-D review and adjustment services or are hesitant to review and adjustment services or are hesitant to apply; once the case is open, States can’t close a apply; once the case is open, States can’t close a case if this is the only service an NCP desires. case if this is the only service an NCP desires.

Bradley Amendment restricts retroactive Bradley Amendment restricts retroactive modification – need to “race to the court to file” modification – need to “race to the court to file” as soon as you receive a request for review or as soon as you receive a request for review or learn a modification may be needed to avoid learn a modification may be needed to avoid unnecessary debt accumulation.unnecessary debt accumulation. 9

Administrative SolutionsAdministrative Solutions

Two Models Two Models Iowa – Shortened Timeframes Iowa – Shortened Timeframes

and and Abbreviated Abbreviated ReviewsReviews

Oregon – Recession Response Oregon – Recession Response TeamTeam

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Administrative Solutions Administrative Solutions - Iowa- Iowa

Iowa has done administrative review and Iowa has done administrative review and adjustment for over 20 yearsadjustment for over 20 years

State law dictated a process rich in due State law dictated a process rich in due process – including two federally mandated process – including two federally mandated 30-day waiting periods -- to assure parents 30-day waiting periods -- to assure parents have ample time to respond and/or seek have ample time to respond and/or seek counselcounsel

With increased demand and need for more With increased demand and need for more timely adjustment, a team of CSE field and timely adjustment, a team of CSE field and central office staff considered various ways central office staff considered various ways toto complete reviews more quickly.complete reviews more quickly.

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Administrative Solutions Administrative Solutions – Iowa – Iowa

Iowa CSE sought legislative changes to Iowa CSE sought legislative changes to the two 30-day waiting periods which the two 30-day waiting periods which were no longer required after passage of were no longer required after passage of PRWORA PRWORA

Sought to expand access to a relatively Sought to expand access to a relatively new “abbreviated” review and new “abbreviated” review and adjustment for cases in which a party is adjustment for cases in which a party is requesting a review. It had formerly been requesting a review. It had formerly been used only for mandatory TANF reviewsused only for mandatory TANF reviews

SF2158 passed effective July 1, 2010SF2158 passed effective July 1, 2010

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Shortened Timeframes – Shortened Timeframes – Iowa Iowa

Effective July 1, 2010, the pre- or post- Effective July 1, 2010, the pre- or post- review timeframes were shortened review timeframes were shortened from 30 days to 15 days in the regular from 30 days to 15 days in the regular administrative review process. administrative review process. Changing the timeframe from 30 to 15 Changing the timeframe from 30 to 15

days allows a worker to do the guidelines days allows a worker to do the guidelines calculation and send the NOD 15 days calculation and send the NOD 15 days after serving the party, and enter the after serving the party, and enter the order 15 days after generating the Notice order 15 days after generating the Notice of Decision (NOD)of Decision (NOD)

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Abbreviated ReviewAbbreviated Review

For customers who request reviews, Iowa For customers who request reviews, Iowa CSE now has authority to use the CSE now has authority to use the “abbreviated review process”. Upon written “abbreviated review process”. Upon written request from a customer, staff request from a customer, staff determination is now made to do a ‘regular’ determination is now made to do a ‘regular’ review or ‘abbreviated’ review. review or ‘abbreviated’ review.

““Abbreviated” doesn’t mean the process Abbreviated” doesn’t mean the process necessarily takes less time, but the law necessarily takes less time, but the law allows CSE to cut out part of the process allows CSE to cut out part of the process and take advantage of available financial and take advantage of available financial information information

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Abbreviated ReviewAbbreviated Review ‘‘Abbreviated’ means instead of starting with Abbreviated’ means instead of starting with

the Notice of Intent (NOI) and waiting for the Notice of Intent (NOI) and waiting for the customer to return financial information, the customer to return financial information, the worker starts the process by gathering the worker starts the process by gathering financial information from available sources, financial information from available sources, including information provided at time of including information provided at time of request by the requestor, from online request by the requestor, from online sources, or from other written information sources, or from other written information from the income provider or other sources. from the income provider or other sources.

The worker then does the guidelines The worker then does the guidelines calculation, and serves the NOD and the calculation, and serves the NOD and the guidelines worksheet on each party. guidelines worksheet on each party.

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Abbreviated ReviewAbbreviated Review If a party disagrees with the calculationIf a party disagrees with the calculation

Either party may challenge by asking for a second Either party may challenge by asking for a second review. review.

The worker will send the Notice of Second Review and The worker will send the Notice of Second Review and include a financial statement in the packet for each include a financial statement in the packet for each parent. parent.

After receiving and verifying the information from the After receiving and verifying the information from the financial statements, the worker will send a new financial statements, the worker will send a new guidelines worksheet with the Second Notice of Decision guidelines worksheet with the Second Notice of Decision to the parties. to the parties.

If neither party requests a court hearing, the process is If neither party requests a court hearing, the process is completed by generating the order, securing the district completed by generating the order, securing the district court judge’s approval, and filing it with the clerk of court judge’s approval, and filing it with the clerk of court. court.

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Abbreviated Review - Abbreviated Review - IowaIowa

During the 9-month period July 2010 to March During the 9-month period July 2010 to March 2011. 2011. 181 reviews 181 reviews were deemed appropriate for were deemed appropriate for

abbreviated review. abbreviated review. 20 reviews were ended because an adjustment wasn’t 20 reviews were ended because an adjustment wasn’t

appropriate and 5 were ended due to ‘other’ reasons. appropriate and 5 were ended due to ‘other’ reasons. CSE filed CSE filed 129 orders (115 administrative and 14 129 orders (115 administrative and 14

judicial).judicial).

In the first 9 months, the average days to In the first 9 months, the average days to complete abbreviated reviews is complete abbreviated reviews is 124 days124 days. For . For comparison, in the same period, average days to comparison, in the same period, average days to complete regular reviews is complete regular reviews is 215 days215 days..

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Administrative Solutions Administrative Solutions – Iowa – Iowa

For more information contact: For more information contact: Mary O'Reilly Loven, PhDMary O'Reilly Loven, PhD

Policy SupervisorPolicy Supervisor

Iowa Bureau of CollectionsIowa Bureau of Collections

400 SW 8th, Suite H400 SW 8th, Suite H

Des Moines, IA 50309Des Moines, IA 50309

515-281-8377515-281-8377

[email protected]@dhs.state.ia.us

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Administrative Solutions Administrative Solutions - Oregon- Oregon

Oregon recognized the rapidly Oregon recognized the rapidly growing problem: growing problem: Parents need a faster, fair, legally-Parents need a faster, fair, legally-

recognized, and more cost-effective recognized, and more cost-effective process to obtain a temporary process to obtain a temporary modification to court ordered child modification to court ordered child support obligations when faced with support obligations when faced with employment-related income changes employment-related income changes caused by the current economic caused by the current economic recession.recession.

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In just three months the Division of In just three months the Division of Child Support :Child Support : developed a legislative concept, developed a legislative concept, saw it enacted, saw it enacted, adopted temporary administrative rules ,adopted temporary administrative rules , selected and trained staff for a selected and trained staff for a

specialized team, and specialized team, and implemented an entirely new, expedited implemented an entirely new, expedited

process in May 2009process in May 2009

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House Bill 2275 passed, became law House Bill 2275 passed, became law effective May 7, 2009, and added a new effective May 7, 2009, and added a new section 13 to Oregon Revised Statutes section 13 to Oregon Revised Statutes (ORS) 416.425. (ORS) 416.425.

Gives the Attorney General the authority Gives the Attorney General the authority to declare a “period of significant to declare a “period of significant unemployment” in Oregon, which starts unemployment” in Oregon, which starts the Recession Response Process. the Recession Response Process.

Attorney General John Kroger made Attorney General John Kroger made such a declaration May 6, 2009.such a declaration May 6, 2009.

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Numerous Administrative Rule Numerous Administrative Rule changes were made changes were made to assure due process to assure due process establish clear parameters and establish clear parameters and

procedures.procedures.Employment-Related Modifications Employment-Related Modifications

(ERM) can only be initiated by (ERM) can only be initiated by Division of CS or DA staff, not Division of CS or DA staff, not courts or private attorneys.courts or private attorneys.

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Recession Response Recession Response ProjectProject

The new Recession Response ProjectThe new Recession Response Project Provides an Provides an alternative administrative alternative administrative

mechanismmechanism Temporarily modifies Temporarily modifies the child support the child support

obligation within a court entered order obligation within a court entered order Order is effective for Order is effective for up to six months up to six months

from the date an Employment Related from the date an Employment Related Modification (ERM) filedModification (ERM) filed

When income has changed due to When income has changed due to unemployment or a reduction in work unemployment or a reduction in work hours hours

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The new Recession Response The new Recession Response Project Project • Previous Previous underlying order reinstated underlying order reinstated

early early if requesting party returns to work if requesting party returns to work earning wages similar to amount used to earning wages similar to amount used to calculate underlying ordercalculate underlying order

Use of actual income Use of actual income vs. presumed income vs. presumed income (for both parties)(for both parties)

Minimum $100 Minimum $100 orders orders Parties can consent Parties can consent to an amount greater or to an amount greater or

less than the child support guideline amountless than the child support guideline amount24


DCS Centralized Recession Response DCS Centralized Recession Response Team -- Team -- Team members use special Team members use special streamlined rules, forms and procedures to streamlined rules, forms and procedures to process requests more quicklyprocess requests more quickly When a party inquires, in person, by phone, fax or e-When a party inquires, in person, by phone, fax or e-

mail, a project team member immediately interviews mail, a project team member immediately interviews the requestor to determine if the case qualifies for the requestor to determine if the case qualifies for Employment-Related Modification (ERM) and Employment-Related Modification (ERM) and conducts a verbal discovery to obtain financial conducts a verbal discovery to obtain financial information. information.

Encourages the parties to accept service and consent Encourages the parties to accept service and consent to a temporary modification amountto a temporary modification amount

Schedules administrative hearings within two weeks Schedules administrative hearings within two weeks of a requestof a request

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Service of Documents Service of Documents Electronic service options (fax, email)Electronic service options (fax, email) Priority mail with Delivery Priority mail with Delivery

Confirmation Confirmation Effectively secures service, cheaper Effectively secures service, cheaper ,and reduces wait time for delivery ,and reduces wait time for delivery confirmation - confirmed by USPS confirmation - confirmed by USPS website tracking methodwebsite tracking method

Self addressed, stamped envelope Self addressed, stamped envelope included with documents mailed to included with documents mailed to expedite returnexpedite return

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Consent OrdersConsent Orders Parties agree to proposed temporary Parties agree to proposed temporary

order amount and return documents order amount and return documents within 14 days within 14 days

Temporary orders with underlying Temporary orders with underlying administrative orders are entered and administrative orders are entered and enforceable immediatelyenforceable immediately

Temporary orders with underlying Temporary orders with underlying judicial orders must be filed in court judicial orders must be filed in court before being entered and enforceable before being entered and enforceable (additional 30-45 days – considerably (additional 30-45 days – considerably less time than traditional modification)less time than traditional modification)

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Expedited Administrative Hearing Expedited Administrative Hearing ProcessProcess Default option (requesting party returns documents and Default option (requesting party returns documents and

non-requesting party doesn’t, case referred for non-requesting party doesn’t, case referred for administrative hearing)administrative hearing)

Hearing process - Recession Response “Rocket Docket”Hearing process - Recession Response “Rocket Docket” Co-housed with Office of Administrative HearingsCo-housed with Office of Administrative Hearings Hearing scheduled within days of request for hearing Hearing scheduled within days of request for hearing (compared to 4-6 weeks for traditional hearing)(compared to 4-6 weeks for traditional hearing) Child support worker appears and testifies in Child support worker appears and testifies in

telephone hearingstelephone hearings Administrative hearing order written and sent to all Administrative hearing order written and sent to all

parties by end of the week in which hearing is heldparties by end of the week in which hearing is held

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Renewal or Reinstatement ProcessRenewal or Reinstatement Process Five month reinstatement notice sentFive month reinstatement notice sent Option for renewal if circumstances Option for renewal if circumstances

haven’t changedhaven’t changed Administrative review conducted by case Administrative review conducted by case

managermanager Renewal granted – new money award filed Renewal granted – new money award filed

in court and valid again for 6 months from in court and valid again for 6 months from date of circuit court filingdate of circuit court filing

No request for renewal made - reinstate No request for renewal made - reinstate underlying child support orderunderlying child support order

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Advertising the Availability of Advertising the Availability of Temporary OrdersTemporary Orders Oregon Child Support Program began Oregon Child Support Program began

marketing the new services to local marketing the new services to local communities and clients communities and clients

Media releases and direct customer outreachMedia releases and direct customer outreach Billing stuffers, brochures, automated voice Billing stuffers, brochures, automated voice

responses system, DCS and employer EFT responses system, DCS and employer EFT website notices website notices

Information shared at DCS employer Information shared at DCS employer seminarsseminars

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Many Positive OutcomesMany Positive Outcomes Timely responses and relief to parents within Timely responses and relief to parents within

weeks - the entire process can take from 7 to 45 weeks - the entire process can take from 7 to 45 days to produce an enforceable child support days to produce an enforceable child support order; compared to a traditional court order order; compared to a traditional court order modification that can take 3 to 6 months or modification that can take 3 to 6 months or longer to complete.longer to complete.

Decrease in arrears, greater long-term payment Decrease in arrears, greater long-term payment compliancecompliance

Secondary outcomes experienced throughout Secondary outcomes experienced throughout the project include many improved work the project include many improved work processes and significantly enhanced processes and significantly enhanced collaboration with parents and partner agencies.collaboration with parents and partner agencies.

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During the period from May 2009 During the period from May 2009 through December 2010, the Team through December 2010, the Team fielded 10,392 inquiries for temporary fielded 10,392 inquiries for temporary ERMs. ERMs. Of those, 384 resulted in the entry of new Of those, 384 resulted in the entry of new

or temporary child support consent orders. or temporary child support consent orders. In addition, there were 374 administrative In addition, there were 374 administrative

hearings requested by the parties, which hearings requested by the parties, which led to 298 new or temporary child support led to 298 new or temporary child support order modifications.order modifications.

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For more information contact: For more information contact:

Sue Armintrout, ManagerSue Armintrout, Manager

Recession Response TeamRecession Response Team

Oregon Division of Child SupportOregon Division of Child Support

(503) 986-6218 (503) 986-6218

[email protected]@doj.state.or.us

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St. Joseph County St. Joseph County DemographicsDemographics

A.A. LocationLocation

B. PopulationB. Population

C. Median IncomeC. Median Income

St. Joseph County IV-D St. Joseph County IV-D Caseload StatisticsCaseload Statistics

A.A. Total Number of CasesTotal Number of Cases

B.B. Total Number of Assistance CasesTotal Number of Assistance Cases

C.C. Total Number of Former Total Number of Former Assistance CasesAssistance Cases

D.D. Total Number of Never Assistance Total Number of Never Assistance CasesCases

E.E. Total CollectionsTotal Collections

F.F. Total Number of StaffTotal Number of Staff

Initial Intake Initial Intake AppointmentsAppointments

A.A. Appointment Letter to CPAppointment Letter to CP

B.B. Subpoena Duces TecumSubpoena Duces Tecum

C.C. Employment VerificationsEmployment Verifications

Determining Gross Determining Gross IncomeIncome

A.A. Indiana Child Support GuidelinesIndiana Child Support Guidelines

B.B. Memorandum on Guideline Memorandum on Guideline RevisionRevision

C.C. Default JudgmentsDefault Judgments

ModificationsModifications

A.A. StipulationsStipulations

B.B. In Gross OrdersIn Gross Orders

C.C. Administrative HearingsAdministrative Hearings

D.D. Establishment of New Orders for Establishment of New Orders for Same NCPSame NCP

SSD/SSI CasesSSD/SSI Cases

A.A. Legal HistoryLegal History

B.B. Memorandum on Credit for Lump Memorandum on Credit for Lump Sum Back AwardSum Back Award

C.C. ModificationsModifications

Indiana Support Indiana Support Enforcement Tracking Enforcement Tracking

System (ISETS)System (ISETS)A.A. ReportsReports

1. NCP not paying full amount of 1. NCP not paying full amount of supportsupport

2. NCP is incarcerated2. NCP is incarcerated

3. CP & NCP have same address3. CP & NCP have same address

4. NCP has applied for SSA benefits4. NCP has applied for SSA benefits

5. NCP is receiving unemployment5. NCP is receiving unemployment

Other ConsiderationsOther Considerations

A.A. IV-D CourtIV-D Court

B.B. Jail Outreach ProjectJail Outreach Project

C.C. Communication with the Felony Communication with the Felony DivisionDivision

D.D. StipulationsStipulations

E.E. Child Support Improvement Child Support Improvement Program (CSIP)Program (CSIP)

Overview of Child Support Hearing Officer Overview of Child Support Hearing Officer ProgramProgram

New Jersey uses a judicial process to establish New Jersey uses a judicial process to establish and enforce child support orders.and enforce child support orders.

RuleRule 5:25-3 authorizes the Child Support 5:25-3 authorizes the Child Support Hearing Officer to hear support cases and Hearing Officer to hear support cases and make recommendations to judges. make recommendations to judges.

Unless a party objects, the recommendation of Unless a party objects, the recommendation of the CSHO becomes an order of the court.the CSHO becomes an order of the court.

Currently, 24 CSHOs and 1 Supervising CSHO Currently, 24 CSHOs and 1 Supervising CSHO hear approximately 100,000 cases per year hear approximately 100,000 cases per year with a negligible appeal rate. with a negligible appeal rate.

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““There is, of course, no brightline rule by which There is, of course, no brightline rule by which to measure when a changed circumstance has to measure when a changed circumstance has endured long enough to warrant a endured long enough to warrant a modification of a support obligation.”modification of a support obligation.”

Larbig v. LarbigLarbig v. Larbig, 384 , 384 NJ SuperNJ Super 17, 23 (App. Div. 2006) 17, 23 (App. Div. 2006)

Hypothetical #1Hypothetical #1

Mom and Dad have two children, Amy and Brad. Amy is 14, Mom and Dad have two children, Amy and Brad. Amy is 14, a freshman in high school, plays in the school band and a freshman in high school, plays in the school band and has braces. Brad is 8, is a math whiz and has asthma.has braces. Brad is 8, is a math whiz and has asthma.

In 2005, Dad was court ordered to pay $200 per week for the In 2005, Dad was court ordered to pay $200 per week for the support of both children, per the NJ Child Support support of both children, per the NJ Child Support Guidelines, and is required to reimburse Mom 65% of any Guidelines, and is required to reimburse Mom 65% of any unreimbursed expenses above $250 per year, per child. unreimbursed expenses above $250 per year, per child. The support was based on Mom’s gross income of $400 The support was based on Mom’s gross income of $400 per week ($20,800 annually) and Dad’s gross income of per week ($20,800 annually) and Dad’s gross income of $800 per week ($41,600 annually)$800 per week ($41,600 annually)

Dad files a motion for a reduction of his support. He Dad files a motion for a reduction of his support. He says that he broke his leg on the job and was out on says that he broke his leg on the job and was out on disability in 2009 for 10 weeks. When he got back, disability in 2009 for 10 weeks. When he got back, he was laid off as his job was being outsourced. He he was laid off as his job was being outsourced. He received a 6 month severance package. Once the received a 6 month severance package. Once the severance package was exhausted, he began severance package was exhausted, he began collecting unemployment benefits of $580 per week. collecting unemployment benefits of $580 per week. He is still receiving unemployment but it will be He is still receiving unemployment but it will be exhausted in a month. He states that he is exhausted in a month. He states that he is attempting to start his own business operating a attempting to start his own business operating a food cart.food cart.

Mom files a motion for an increase. She says that the Mom files a motion for an increase. She says that the children are now involved in more extracurricular activities children are now involved in more extracurricular activities and the braces and asthma force her to spend more on and the braces and asthma force her to spend more on medical. When Dad lost his job, the children lost their medical. When Dad lost his job, the children lost their medical coverage. She now has NJ Family Care at no cost to medical coverage. She now has NJ Family Care at no cost to her, but she has out of pocket expenses for office visits and her, but she has out of pocket expenses for office visits and medication. She lost her job and was collecting medication. She lost her job and was collecting unemployment. Because of this, she lost her apartment and unemployment. Because of this, she lost her apartment and the family was forced to move in with her parents. She has the family was forced to move in with her parents. She has recently returned to work earning $9 per hour but after 90 recently returned to work earning $9 per hour but after 90 days it will increase to $10.50 per hour. She states that Dad days it will increase to $10.50 per hour. She states that Dad has always had the food cart business on the side and always has always had the food cart business on the side and always has extra cash. has extra cash.

Dad responds that Mom doesn’t pay rent at her parent’s Dad responds that Mom doesn’t pay rent at her parent’s house and spends his child support on vacations, clothes for house and spends his child support on vacations, clothes for herself and drives a brand new car.herself and drives a brand new car.

QUESTIONS:QUESTIONS:

1. DOES DAD HAVE A BASIS FOR MODIFICATION?1. DOES DAD HAVE A BASIS FOR MODIFICATION?

2. DOES MOM HAVE A BASIS FOR MODIFICATION?2. DOES MOM HAVE A BASIS FOR MODIFICATION?

Hypothetical #2Hypothetical #2

Using the same fact pattern as Hypothetical #1, with Using the same fact pattern as Hypothetical #1, with the following additional information:the following additional information:

Dad did not pay for the 10 weeks that he was on Dad did not pay for the 10 weeks that he was on disability. He paid sporadically while he was disability. He paid sporadically while he was receiving his severance package. It took 6 weeks receiving his severance package. It took 6 weeks before income withholding began on his before income withholding began on his unemployment benefits. Dad owes arrears of $7993. unemployment benefits. Dad owes arrears of $7993. Probation has added an additional payment of $50 Probation has added an additional payment of $50 per week towards the payment of those arrears. per week towards the payment of those arrears.

Mom wants the order enforced. Dad says he is Mom wants the order enforced. Dad says he is unable to pay.unable to pay.

QUESTIONS:QUESTIONS:

1. HOW DO YOU ENFORCE THIS ORDER?1. HOW DO YOU ENFORCE THIS ORDER?

2. WHAT FACTORS SHOULD BE CONSIDERED IF 2. WHAT FACTORS SHOULD BE CONSIDERED IF YOU FIND THAT ENFORCEMENT IS YOU FIND THAT ENFORCEMENT IS APPROPRIATE?APPROPRIATE?

Modifications, Review Modifications, Review and Adjustment in Tough and Adjustment in Tough

Economic TimesEconomic Times

QUESTIONS? QUESTIONS?

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Modifications, Review and Adjustment in Tough Economic Times May 25, 2011 Nancy Thoma Groetken, Regional Program Manager Office of Child Support Enforcement.

Documents

current support

child support system

bad times

timely review

economic recovery

current obligation

tough economic times

better times