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Each parent's income is considered, which includes wages, overtime, commissions, bonuses, self-employment income, contract income, investment earnings, social security, unemployment, disability, worker's compensation, retirement income, military pay, tips, gambling earnings, alimony (spousal support), and employment ...
Child support is determined by a formula encompassed in the Michigan Child Support Guidelines. The formula takes into account several factors including the income of each parent, the parenting time schedule, tax deductions, health insurance costs, and the number of children.
The Michigan Child Support Formula determines which parent will pay child support and the support amount, based on factors including each parent's income and the number of nights per year that the child spends with each parent (called "overnights").
The formula uses a parent's net income, which is defined as all income minus deductions and adjustments permitted by the child support manual.
Adding together each parent's monthly net income determines their combined net income. The state uses this figure to set a base support obligation, or how much parents are expected to spend on their children each month. Each parent is responsible for part of the base support obligation, proportional to their income.