AB540: Bill Text

The bill makes a few other changes relating to support. Under current law, family support is an order that combines child support and maintenance (formerly called alimony) into a single support amount. The bill provides that a family support order may not include a child support amount that exceeds the amount of child support that would be determined otherwise in the manner provided in the statutes. The bill prohibits a court from including a provision in a support order that sets a minimum amount of child support that may be ordered at a future time if the support order is revised. The bill also provides that, in an action to revise an order with respect to the amount of child support, regardless of when the order was granted, if it includes a provision that sets a minimum amount of support that may be ordered at a future time, that provision is void and may not be given effect.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB540,1 Section 1. 49.22 (9) of the statutes is amended to read:

AB540,5,10 49.22 (9) The department shall promulgate rules that provide a standard for courts to use in determining a child support obligation based upon a percentage of the gross income and assets of either or both parents. The rules shall provide for consideration of the income of each parent and the amount of physical placement with each parent in determining a child support obligation in cases in which a child has substantial periods of physical placement with each parent. The rules may not base any amount of child support on any portion of a parent's gross income that exceeds $150,000 per year, which gross income amount shall be adjusted annually, beginning in 2015, to reflect changes in the consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor.

AB540,2 Section 2. 767.225 (1n) (b) 1. of the statutes is amended to read:

AB540,5,17 767.225 (1n) (b) 1. If the court makes a temporary child support order that deviates from the amount of support that would be required by using the percentage standard established by the department under s. 49.22 (9) 767.511 (1j), the court shall comply with the requirements of s. 767.511 (1n). The court may make a temporary child support order that deviates from the amount that would be required under s. 767.511 (1j) by reducing, but not by increasing, that amount.

AB540,3 Section 3. 767.41 (4) (a) 2. of the statutes is amended to read:

AB540,6,4 767.41 (4) (a) 2. In determining the allocation of periods of physical placement, the court shall consider each case on the basis of the factors in sub. (5) (am), subject to sub. (5) (bm). The court shall set presume that a placement schedule that allows the child to have regularly occurring, meaningful periods of physical placement with each parent and that maximizes equalizes to the highest degree the amount of time the child may spend with each parent, taking into account geographic separation and accommodations for different households is in the best interest of the child. The presumption under this subdivision is rebutted if the court finds by clear and convincing evidence, after considering all of the factors in sub. (5) (am), subject to sub. (5) (bm), that equalizing physical placement to the highest degree would not be in the child's best interest.

AB540,4 Section 4. 767.41 (5) (am) 5m. of the statutes is created to read:

AB540,6,6 767.41 (5) (am) 5m. The geographic separation of the parties.

AB540,5 Section 5. 767.511 (1j) (title) of the statutes is amended to read:

AB540,6,9 767.511 (1j) (title) Percentage Calculation; percentage standard generally required.

AB540,6 Section 6. 767.511 (1j) of the statutes is renumbered 767.511 (1j) (intro.) and amended to read:

AB540,6,13 767.511 (1j) (intro.) Except as provided in sub. (1m), the court shall determine child support payments by using in the following manner:

AB540,6,15 (a) Except as otherwise provided in this subsection, the court shall use the percentage standard established by the department under s. 49.22 (9).

AB540,7 Section 7. 767.511 (1j) (b) of the statutes is created to read:

AB540,6,21 767.511 (1j) (b) The court may not order any amount of child support based on any portion of a parent's gross income that exceeds $150,000 per year. This income amount shall be adjusted annually, beginning in 2015, to reflect changes in the consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor.

AB540,8 Section 8. 767.511 (1j) (c) of the statutes is created to read:

AB540,7,2 767.511 (1j) (c) The court shall base child support payments only on a parent's actual income or on imputed income based on earning capacity, as determined by the court, and may not order any amount of child support based on the value of any of a parent's assets.

AB540,9 Section 9. 767.511 (1j) (d) of the statutes is created to read:

AB540,7,9 767.511 (1j) (d) When the court calculates the amount of a parent's child support payments, unless the parties agree otherwise in writing or orally in open court, the court shall reduce the amount determined under pars. (a) to (c) by the amount per month that the parent currently pays or is ordered to pay for health insurance premiums attributable to the child for whom the support is being determined.

AB540,10 Section 10. 767.511 (1m) (intro.) of the statutes is amended to read:

AB540,7,16 767.511 (1m) Deviation from standard; factors. (intro.) Upon request by a party, the court may modify, by reducing but not by increasing, the amount of child support payments determined under sub. (1j) if, after considering the following factors, the court finds by the greater weight of the credible evidence that use of the percentage standard the amount of child support determined under sub. (1j) is unfair to the child or to any of the parties:

AB540,11 Section 11. 767.511 (1n) of the statutes is amended to read:

AB540,8,2 767.511 (1n) Deviation from standard; record. If the court finds under sub. (1m) that use of the percentage standard the amount of child support determined under sub. (1j) is unfair to the child or the requesting party, the court shall state in writing or on the record the amount of support that would be required by using the percentage standard under sub. (1j), the amount by which the court's order deviates is reduced from that amount, its reasons for finding that use of the percentage standard the amount of child support determined under sub. (1j) is unfair to the child or the party, its reasons for the amount of the modification reduction, and the basis for the modification reduction.

AB540,12 Section 12. 767.511 (1r) of the statutes is created to read:

AB540,8,7 767.511 (1r) Minimum revision amounts prohibited. The court may not grant a child support order that sets a minimum amount of support that may be ordered in the future in the event that the child support order is revised under s. 767.59 or a substantially similar law of another state.

AB540,13 Section 13. 767.513 (2) of the statutes is amended to read:

AB540,9,2 767.513 (2) Responsibility and payment. In addition to ordering child support for a child under s. 767.511 (1), and subject to s. 767.511 (1j) (d), the court shall specifically assign responsibility for and direct the manner of payment of the child's health care expenses. In assigning responsibility for a child's health care expenses, the court shall consider whether a child is covered under a parent's health insurance policy or plan at the time the court approves a stipulation for child support under s. 767.34, enters a judgment of annulment, divorce, or legal separation, or enters an order or a judgment in a paternity action or in an action under s. 767.001 (1) (f) or (j), 767.501, or 767.805 (3), the availability of health insurance to each parent through an employer or other organization, the extent of coverage available to a child, and the costs to the parent for the coverage of the child. A parent may be required to initiate or continue health care insurance coverage for a child under this section. If a parent is required to do so, he or she shall provide copies of necessary program or policy identification to the custodial parent and is liable for any health care costs for which he or she receives direct payment from an insurer. This section shall not be construed to limit the authority of the court to enter or modify support orders containing provisions for payment of medical expenses, medical costs, or insurance premiums that are in addition to and not inconsistent with this section.

AB540,14 Section 14. 767.531 (intro.) (except 767.531 (title)) of the statutes, as affected by 2013 Wisconsin Act 20, is renumbered 767.531 (1m) and amended to read:

AB540,9,9 767.531 (1m) The court may make a financial order designated "family support" as a substitute for child support orders under s. 767.511 and maintenance payment orders under s. 767.56. As part of a family support order, the court may not order a party to pay an amount of child support that exceeds the child support payments that the party would be required to pay under s. 767.511 (1j).

AB540,9,17 (2m) Subject to s. 767.511 (6m), a party ordered to pay family support under this section shall pay simple interest at the rate of 1% per month on any amount in arrears that is equal to or greater than the amount of child support due in one month. Subject to s. 767.511 (6m), if the party no longer has a current obligation to pay child support, interest at the rate of 1% per month shall accrue on the total amount of child support in arrears, if any. Interest under this section is in lieu of interest computed under s. 807.01 (4), 814.04 (4), or 815.05 (8) and is paid to the department or its designee under s. 767.57.

AB540,9,19 (3m) Except as provided in s. 767.57 (1m), the department or its designee shall apply all payments received for family support as follows:

AB540,15 Section 15. 767.531 (1) of the statutes is renumbered 767.531 (3m) (a).

AB540,16 Section 16. 767.531 (2) of the statutes is renumbered 767.531 (3m) (b).

AB540,17 Section 17. 767.531 (3) of the statutes is renumbered 767.531 (3m) (c).

AB540,18 Section 18. 767.55 (2) (c) of the statutes is amended to read:

AB540,9,25 767.55 (2) (c) If the court enters an order under par. (am), it shall order the parent to pay child support equal to the amount determined by applying the percentage standard established under s. 49.22 (9) 767.511 (1j) or equal to the amount of child support that the parent was ordered to pay in the most recent determination of support under this chapter. The child support obligation ordered under this paragraph continues until the parent makes timely payment in full for 3 consecutive months or until the person participates in the program under s. 49.36 for 16 weeks, whichever occurs first. The court shall provide in its order that the parent shall make child support payments calculated under s. 767.511 (1j) or (1m) after the obligation to make payments ordered under this paragraph ceases.

AB540,19 Section 19. 767.553 (1) (a) of the statutes is amended to read:

AB540,10,15 767.553 (1) (a) An order for child or family support under this chapter may provide for an annual adjustment in the amount to be paid based on a change in the payer's income if the amount of child or family support is expressed in the order as a fixed sum and based on the percentage standard established by the department determined in the manner provided under s. 49.22 (9) 767.511 (1j). No adjustment may be made under this section unless the order provides for the adjustment.

AB540,20 Section 20. 767.553 (1) (b) of the statutes is amended to read:

AB540,10,19 767.553 (1) (b) An adjustment under this section may not be made more than once in a year and shall be determined on the basis of the percentage standard established by the department in the manner provided under s. 49.22 (9) 767.511 (1j).

AB540,21 Section 21. 767.59 (1c) (a) (intro.) of the statutes is amended to read:

AB540,11,2 767.59 (1c) (a) (intro.) On the petition, motion, or order to show cause of either of the parties, the department, a county department under s. 46.215, 46.22, or 46.23, or a county child support agency under s. 59.53 (5) if an assignment has been made under s. 48.57 (3m) (b) 2. or (3n) (b) 2., 48.645 (3), 49.19 (4) (h), or 49.45 (19) or if either party or their minor children receive aid under s. 48.57 (3m) or (3n) or 48.645 or ch. 49, a court may, except as provided in par. pars. (b) and (c), do any of the following:

AB540,22 Section 22. 767.59 (1c) (a) 1. of the statutes is amended to read:

AB540,11,9 767.59 (1c) (a) 1. Revise and alter a support or maintenance order as to the amount and payment of maintenance or child support and the appropriation and payment of the principal and income of property held in trust. The court may revise and alter a child support order regardless of whether the amount of support was determined by the court, by court approval of a stipulation of the parties, or through arbitration.

AB540,23 Section 23. 767.59 (1c) (c) of the statutes is created to read:

AB540,11,14 767.59 (1c) (c) In an action under this section to revise a judgment or order as to the amount of child or family support, the court must revise the judgment or order as to the amount of child or family support if the court finds a substantial change in circumstances.

AB540,24 Section 24. 767.59 (1f) (b) (intro.) of the statutes is amended to read:

AB540,11,19 767.59 (1f) (b) (intro.) In an action under this section to revise a judgment or order with respect to the amount of child support, any of the following constitutes a rebuttable presumption of a substantial change in circumstances sufficient to justify require a revision of the judgment or order:

AB540,25 Section 25. 767.59 (1f) (b) 4. of the statutes is amended to read:

AB540,12,4 767.59 (1f) (b) 4. A If the action is one to revise a judgment or order with respect to child support ordered under s. 48.355 (2) (b) 4., 48.357 (5m) (a), 48.363 (2), 938.183 (4), 938.355 (2) (b) 4., 938.357 (5m) (a), 938.363 (2), or 948.22 (7), a difference between the amount of child support ordered by the court to be paid by the payer and the amount that the payer would have been required to pay based on the percentage standard established by the department under s. 49.22 (9) if the court did not use the percentage standard in determining the child support payments and did not provide the information required under s. 46.10 (14) (d), 49.345 (14) (d), or 301.12 (14) (d), or 767.511 (1n), whichever is appropriate.

AB540,26 Section 26. 767.59 (1f) (bm) of the statutes is created to read:

AB540,12,13 767.59 (1f) (bm) In an action under this section to revise a judgment or order with respect to an amount of child or family support ordered under this chapter, the court shall find a substantial change in circumstances sufficient to require revision of the judgment or order if the amount of child support ordered by the court to be paid by the payer exceeds the amount that the payer would have been required to pay under s. 767.511 (1j) (a) to (d), had the court determined child support payments in the manner provided under s. 767.511 (1j) (a) to (d), by 10 percent or more of the latter amount.

AB540,27 Section 27. 767.59 (1f) (c) (intro.) of the statutes is amended to read:

AB540,12,18 767.59 (1f) (c) (intro.) In an action under this section to revise a judgment or order with respect to an amount of child support, any of the following may constitute a substantial change of in circumstances sufficient to justify require revision of the judgment or order:

AB540,28 Section 28. 767.59 (2) (a) of the statutes is amended to read:

AB540,12,23 767.59 (2) (a) Except as provided in par. (b) or (c), if the court revises a judgment or order with respect to child support payments, it shall do so by using the percentage standard established by the department in the manner provided under s. 49.22 (9) 767.511 (1j).

AB540,29 Section 29. 767.59 (2) (b) of the statutes is amended to read:

AB540,13,6 767.59 (2) (b) Upon request by a party, the court may modify, by reducing but not by increasing, the amount of revised child support payments determined under par. (a) if, after considering the factors listed in s. 767.511 (1m), the court finds, by the greater weight of the credible evidence, that the use of the percentage standard amount of child support determined in the manner provided under s. 767.511 (1j) is unfair to the child or to any of the parties.

AB540,30 Section 30. 767.59 (2m) of the statutes is created to read:

AB540,13,13 767.59 (2m) Minimums are void. In an action under this section to revise a judgment or order with respect to the amount of child support, any provision in the judgment or order that sets a minimum amount of child support that may be ordered in the future in the event that the child support order is revised under this section or a substantially similar law of another state is void and may not be given effect by the court, regardless of when the judgment or order was granted.

AB540,31 Section 31. 767.85 (2) of the statutes is amended to read:

AB540,13,23 767.85 (2) Considerations. Before making any temporary order under sub. (1), the court shall consider those factors that the court is required to consider when granting a final judgment on the same subject matter. If the court makes a temporary child support order that deviates from the amount of support that would be required by using the percentage standard established by the department under s. 49.22 (9) 767.511 (1j), the court shall comply with the requirements of s. 767.511 (1n). The court may make a temporary child support order that deviates from the amount that would be required under s. 767.511 (1j) by reducing, but not by increasing, that amount.

AB540,32 Section 32 . Initial applicability.

AB540,14,4 (1) General. Except as provided in subsections (2) and (3 ), this act first applies to child or family support orders, including temporary orders and orders revising judgments or orders previously granted, that are granted on the effective date of this subsection.

AB540,14,7 (2) Annual adjustments in child support. The treatment of section 767.553 (1) (b) of the statutes first applies to adjustments made on the effective date of this subsection.

AB540,14,11 (3) Equal placement presumption. The treatment of section 767.41 (4) (a) 2. and (5) (am) 5m. of the statutes first applies to actions or proceedings, including actions or proceedings to modify a judgment or order previously granted, that are commenced on the effective date of this subsection.

AB540,14,12 (End)