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Child Support Changes
An analysis of the recent revisions to Rule 32 of the Alabama Rules of Judicial Administration
There are few Rules that an Alabama domestic practitioner uses more than Rule 32 of the Alabama Rules of Judicial Administration. Rule 32 provides the Alabama Child Support Guidelines, which is pertinent in every case in Alabama in which child support is involved. Rule 32 states, in pertinent part:
Guidelines for child support are hereby established for use in any action to establish or modify child support, whether temporary or permanent. There shall be a rebuttable presumption, in any judicial or administrative proceeding for the establishment or modification of child support, that the amount of the award that would result from the application of these guidelines is the correct amount of child support to be awarded.1
Until now, the most recent amendments to Rule 32 became effective on July 1, 2019, amending guidelines that had become effective January 1, 2009.2 However, Rule 32 has received a recent overhaul, which became effective May 1, 2022, per a January 14, 2022 Order of the Alabama Supreme Court.3 The amended rule applies to cases that are initiated “on or after May 1, 2022;” cases that are filed prior to May 1, 2022 but are not finalized prior to May 1, 2022 will still be governed by the “old” version of Rule 32 (hereinafter referred to as the “prior” version), which became effective July 1, 2019.4
This article provides a thorough review of the substantive changes to Rule 32 as amended, effective May 1, 2022, and distinguishes each change from its prior version.
Rule 32(A)(1)(e), in both the amended and prior versions, lists, as a possible reason for deviating from the guidelines, the scenario in which the assumption is not followed regarding claiming a child as a dependency exemption for income tax purposes.5 The assumption states that the custodial parent claims such dependency exemption.6 The prior version states that this assumption is “under the Schedule of Basic Child-Support Obligations,” while the amended version states that this assumption is “under the Internal Revenue Code.”7 Other than that minor substitution, the two versions of Rule 32(A)(1)(e) are identical.
Rule 32(B)(8)(a) in the amended version is identical to Rule 32(B)(8) in the prior version. Rule 32(B)(8)(b) was added in the amended version, which provides that the parent who pays the costs of work-related childcare is given a dollar-for-dollar credit for such payment, which is subtracted from his or her child-support obligation.8
Rule 32(C)(1) in the amended version grants the court discretion in determining the amount of child support to be paid only in instances where the parties’ “combined adjusted gross income exceeds the uppermost levels of the schedule,” while the prior version granted the court the same discretion when not only when the parties’ “combined adjusted gross income exceeds the uppermost levels of the schedule,” but also when the parties’ “combined adjusted gross income is below the lowermost levels . . . of the schedule.”9
Rule 32(C)(5) in the amended version of Rule 32 is altogether new, and describes the SSR calculation in regard to child support, which stands for “Self-support reserve.”10 While the SSR is not a new concept to the Alabama Child Support Guidelines, the amended Rule 32 handles SSR much differently.11 The SSR, which is in the amount of $981.00 per the amended Rule 32, allows an obligor to retain funding for basic living expenses before the imposition of a child support obligation and “is based on the 2021 federal poverty levels, adjusted for Alabama incomes.”12 Under the amended Rule 32, SSR will be taken into account in the amended CS-42 form.13 To do so: [F]irst determine the “Income
Available After SSR” by subtracting the SSR amount from the “Monthly
Caleb A. Faulkner is with Boyd, Fernambucq & Dunn, P.C.
1Ala. R. Jud. Admin. 32(A). 2Ala. R. Jud. Admin. 32.
3January 14, 2022 Order of the Alabama Supreme Court. 4Appendix A, January 14, 2022 Order of the Alabama Supreme Court. 5Ala. R. Jud. Admin. 32(A)(1)(e); Appendix B, January 14, 2022 Order of the Alabama Supreme Court. 6Ala. R. Jud. Admin. 32(A)(1)(e); Appendix B, January 14, 2022 Order of the Alabama Supreme Court. 7Ala. R. Jud. Admin. 32(A)(1)(e); Appendix B, January 14, 2022 Order of the Alabama Supreme Court. 8Ala. R. Jud. Admin. 32(B)(8); Appendix C, January 14, 2022 Order of the Alabama Supreme Court. 9Ala. R. Jud. Admin. 32(C)(1); Appendix D, January 14, 2022 Order of the Alabama Supreme Court. 10Ala. R. Jud. Admin. 32(C)(5); Appendix E, January 14, 2022 Order of the Alabama Supreme Court. 11Appendix G, January 14, 2022 Order of the Alabama Supreme Court. 12Ala. R. Jud. Admin. 32(C)(5)(a)-(b); Appendix E, January 14, 2022 Order of the Alabama Supreme Court. 13Ala. R. Jud. Admin. 32(C)(5)(c); Appendix E, January 14, 2022 Order of the Alabama Supreme Court; Appendix H, January 14, 2022 Order of the Alabama Supreme Court.
Adjusted Gross Income” entered on Line 2 of the Child-Support
Guidelines form (Form CS-42); the difference should be entered on Line 11 of the Child-Support Guidelines form. Next, calculate the “Income
Available for Support” by entering 85% of the amount entered on Line 11 of the Child-Support Guidelines form onto Line 12 of the Child-Support Guidelines form.14
Under the amended version of Rule 32, the recommended child support order will be the lesser amount of Line 10 of the CS-42 (the Obligor’s “Adjusted Child Support Obligation”) and Line 12 of the CS-42 (“Income Available for Support,” which takes into account the SSR).15 However, “[i]f the amount entered on Line 12 is less than $50, there is a rebuttable presumption that a $50 minimum amount [of child support] should be entered.”16
Rule 32(C)(6) in the amended version of Rule 32 is altogether new as well, and describes the “Zero-dollar order” in regard to child support, which provides for a rebuttable presumption that the obligor should not be ordered to pay child support in cases in which he or she “has no gross income and receives only means-tested assistance.”17 Such presumption also applies in cases where an obligor is “incarcerated or institutionalized” for at least one hundred and eighty-one (181) consecutive days.18 As with all cases involving support for a minor child, forms CS-41, CS-42, and CS-43 must still be completed and filed in such cases.19
Appendix G to the Alabama Supreme Court’s January 14, 2022 Order provides the Committee Comments to the amended version of Rule 32.20 The Comments provide excellent context for, and explanation of, the revisions. They also explain several assumptions contained within the amended rule. While this Article will not discuss in depth the four (4) pages of Committee Comments, which the domestic practitioner should certainly read and be familiar with, a few highlights of the Comments are as follows: ► The amended “Schedule of Basic Child-Support Guidelines” provides guideline child support amounts for
14Ala. R. Jud. Admin. 32(C)(5)(c); Appendix E, January 14, 2022 Order of the Alabama Supreme Court; Appendix H, January 14, 2022 Order of the Alabama Supreme Court. 15Ala. R. Jud. Admin. 32(C)(5)(c); Appendix E, January 14, 2022 Order of the Alabama Supreme Court; Appendix H, January 14, 2022 Order of the Alabama Supreme Court. 16Ala. R. Jud. Admin. 32(C)(5)(c); Appendix E, January 14, 2022 Order of the Alabama Supreme Court; Appendix H, January 14, 2022 Order of the Alabama Supreme Court. 17Ala. R. Jud. Admin. 32(C)(6); Appendix F, January 14, 2022 Order of the Alabama Supreme Court. 18Ala. R. Jud. Admin. 32(C)(6); Appendix F, January 14, 2022 Order of the Alabama Supreme Court. 19Ala. R. Jud. Admin. 32(C)(6); Appendix F, January 14, 2022 Order of the Alabama Supreme Court. 20Committee Comments to Ala. R. Jud. Admin. 32; Appendix G, January 14, 2022 Order of the Alabama Supreme Court.
combined gross monthly incomes of $0 to $30,000.00, while the prior schedule only went up to $20,000.00. ► Rule 32(B)(8)(b) of the amended Rule 32 provides for a reduction in the child support amount for payment of work-related childcare, as reflected in the amended CS-42. ► While the SSR in the prior version of Rule 32 was simply accounted for in the Child Support Guideline Schedule, SSR is now included in Rule 32 itself, which “will aid in transparency and will allow the amount of the SSR to be updated in the future without having to update the entire schedule.” ► The SSR amount in the prior version of Rule 32 was based on 2007 poverty guidelines, and the new amount, $981.00, is based on 2021 poverty levels. ► Rule 32(C)(5)(c) includes an “economic incentive” of 85%, which is included in Line 12 of the amended CS-42 and is applied to the “Income Available after SSR.” The “85%” allows for a 15% retention of earnings, rounded up from 13%, which is the federal and state income tax percentage for a fulltime employee earning minimum wage. The economic incentive prevents “all of the obligor’s earnings exceeding the SSR amount [from being] considered in determining his or her child-support obligation” and “takes into consideration the payroll taxes on the obligor’s earnings exceeding the SSR amount and also allows the obligor to keep a small portion of those earnings.” ► The “Zero-dollar order” does not abrogate the court’s ability to exercise discretion in imputing income in cases in which the court finds that an obligor is voluntarily underemployed or unemployed.21
Appendix I of the Alabama Supreme Court’s January 14, 2022 Order is the
“Schedule of Basic Child-Support
Guidelines.”22 A comparison of the prior schedule and the amended schedule at several points (combined adjusted gross monthly income of $800; $5,000; $10,000; $15,000; and $20,000, all with one child) yields the same result at each point: the guideline child support amount is higher according to the amended schedule.23 However, one must recall that, as applicable to the lower combined adjusted gross monthly income amounts, the SSR is now calculated in the CS-42 and is not embedded within the child support amounts on the schedule, as was the case with the prior schedule. Further, it must be remembered that an obligor under the amended Rule 32 receives a credit against his or her child support obligation for work-related childcare paid by him or her.
A question that has been prevalent since the unveiling of these revisions is whether recommended child support orders pursuant to the amended Rule 32 will be higher or lower than such recommended orders under the prior version of Rule 32. Obviously, a number of variables are applicable in determining whether a recommended amount will be higher or lower under the amended Guidelines. Please see below a comparison of the recommended child support orders between the prior version and the amended version of Rule 32 in three separate hypothetical situations:
21Committee Comments to Ala. R. Jud. Admin. 32; Appendix G, January 14, 2022 Order of the Alabama Supreme Court; Appendix H, January 14, 2022 Order of the Alabama Supreme Court. Supreme Court. 22Appendix to Ala. R. Jud. Admin. 32; Appendix I, January 14, 2022 Order of the Alabama Supreme Court. 23Appendix I, January 14, 2022 Order of the Alabama Supreme Court.
SCENARIO 1
► Combined Adjusted Gross Monthly Income: $800 ► Obligor Adjusted Gross Monthly Income: $800 ► Obligee Adjusted Gross Monthly Income: $0 ► Work-related child care costs: $100 (paid by Obligor) ► Health care coverage paid by either parent: $0 ► Number of Children: 1 ► Recommended Child Support Order per prior Rule 32: $150 ► Recommended Child Support Order per amended Rule 32: $50
In this case, the Recommended Child Support Order under the amended Rule 32 is $100 less.
SCENARIO 2
► Combined Adjusted Gross Monthly Income: $10,000 ► Obligor Adjusted Gross Monthly Income: $7,500 ► Obligee Adjusted Gross Monthly Income: $2,500 ► Work-related child care costs: $700 (paid by Obligor) ► Health care coverage: $400 (paid by Obligor) ► Number of children: 1 ► Recommended Child Support Order per prior Rule 32: $1,231 ► Recommended Child Support Order per amended Rule 32: $591
In this case, the Recommended Child Support Order under the amended Rule 32 is $640 less.
SCENARIO 3
► Combined Adjusted Gross Monthly Income: $20,000 ► Obligor Adjusted Gross Monthly Income: $15,000 ► Obligee Adjusted Gross Monthly Income: $5,000 ► Work-related child care costs: $800 (paid by Obligee) ► Health care coverage: $500 (paid by Obligor) ► Number of children: 1 ► Recommended Child Support Order per old Rule 32: $1615 ► Recommended Child Support Order per amended Rule 32: $1851
In this case, the Recommended Child Support Order under the amended Rule 32 is $236 more.
The revisions to Rule 32 have provided much-needed updates to the Alabama Child Support Guidelines. While some of the revisions appear confusing at first glance, they provide clarity and transparency to the child support process. However, as seen above, the effect of the revisions in terms of recommended child support orders all depends on the specific financial facts of a particular case. Starting with cases filed May 1, 2022 and after, we will see in practice the true impact of the revisions to Rule 32.24
24Disclaimer: In regard to all citations and other information contained within this Article, this Article was written and submitted to the Birmingham Bar Bulletin prior to the amended rule’s effective date of May 1, 2022.
