What is a cost of living adjustment for child support?
In Pennsylvania, a cost of living adjustment (COLA) is an adjustment made to a child support order to account for increases in the cost of living. It is an effort to ensure that children receive support payments that meet their needs as they continue to grow. COLA is determined by a state formula that regulates the increase in child support payments to make sure they keep up with inflation. The formula for a cost of living adjustment usually includes a calculation based on the Consumer Price Index (CPI). This is a calculation of price changes for a specific year that tracks changes by comparing the cost of essential items such as food, fuel, and housing. Each year, the CPI is used to determine an increase or decrease in child support payments. In some cases, the court may also consider other factors beyond the CPI, such as the child’s needs, the financial situation of the payor, and any other special circumstances. In Pennsylvania, both parents are obligated to provide for a child’s financial needs and, as the child grows, the court will consider a cost of living adjustment. Generally speaking, the court reviews the child support order annually to make sure it is kept up with inflation so that the child continues to receive sufficient support.
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