What is a cost of living adjustment for child support?

A cost of living adjustment for child support is a mechanism used to ensure that the amount of child support awarded by a court reflects the current economic environment. In Vermont, the cost of living adjustment (COLA) is reviewed annually by the Department of Children and Families (DCF) and may be adjusted, depending on the Consumer Price Index (CPI). When a court awards child support, the judge may specify that the amount is subject to a COLA. In this case, the court order will direct that the DCF will review the index to determine whether parents should adjust their payments. The adjustment will be based on the percentage increase or decrease of the index from the time of the court order until the time of the COLA review. The COLA review is conducted during alimony reviews, modification requests, or other court-ordered reviews. If the DCF finds that the CPI has increased or decreased, it may adjust the payment amount up or down. If the index has increased, the court-ordered amount of child support may increase to reflect the increased cost of living. By utilizing the COLA mechanism, the court can ensure that child support payments remain current with the current economic environment. This helps to ensure that the paying parent is able to provide the needed support for the recipient child’s current circumstances. The COLA is also important in helping to maintain consistency in child support payments over time.

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What is a cost of living adjustment for child support?

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