What is a cost of living adjustment for child support?

A cost of living adjustment (COLA) is a change that is made to the amount of child support payments that occur due to fluctuations in the cost of living. This helps to ensure that the amount of child support payments reflects the actual cost of living. In Michigan, the court may decide, on its own or at the request of either parent, to increase a child support payment with a cost of living adjustment due to significant changes in the cost of living. Any increase in child support payments due to the COLA must be shown to be in the best interests of the child. The court may calculate the COLA using either the Consumer Price Index or other economic indices, including wage surveys or reports from economic experts. If the court decides to use the CPI, it is important to note that the formula used by the Michigan court system to determine the COLA for child support payments is different from the formula used to determine the standard CPI. In Michigan, a cost of living adjustment to child support payments is usually only used when there is a significant change in the cost of living. If the court decides that a COLA is necessary, the amount of adjustment to the child support payments must be reasonable, taking into account the financial resources of both parents. The adjustment should not create an undue burden on either parent.

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