SF2666

Purpose of the Bill

The bill aims to repeal the automatic cost-of-living adjustments (COLA) for maintenance (alimony) and child support orders in Minnesota. It also makes necessary changes to related statutes to conform with this repeal.

Main Provisions

• Repeal of Cost-of-Living Adjustments: The bill eliminates the provision that allowed automatic COLA based on the consumer price index for child support and maintenance payments. This applies to orders issued before January 1, 2027, and modifies future orders accordingly.
• Conforming Amendments: Changes are made to existing laws and forms to reflect the removal of COLA. This includes adjustments in the calculation of child support obligations and documentation required for child and medical support.
• New Regulation on Support Adjustments: The bill emphasizes that any modifications to child support, due to changes like job loss or pay reduction, will only take effect once ordered by the court and are not retroactive without prior motion filing.
• Medical and Child Care Support Allocation: For orders issued after January 1, 2027, the cost of private health care coverage and unreimbursed expenses must be divided based on each parent's financial capability, but these are not adjusted by COLA.

Significant Changes

• Eliminating Automatic Adjustments: By repealing the cost-of-living adjustment clause, the bill requires any adjustments to child support or maintenance payments to be court-ordered rather than occurring automatically with inflation.
• Handling Medical Support: The bill outlines the treatment of medical support costs, ensuring they are calculated without relying on automatic COLA.

Relevant Terms

• Cost-of-Living Adjustment (COLA)
• Child Support
• Maintenance/Alimony
• Minnesota Statutes
• Public Assistance
• Private Health Care Coverage
• Unreimbursed Health Expenses
• Judicial Modification