Cost-of-living adjustments

The cost-of-living adjustment is based on a Consumer Price Index (CPI). These indexes measure the increased costs of things like food, clothing and shelter. Court orders specify which index to use to calculate the adjustment and how often the cost-of-living adjustment is made. This information may be in the text of your court order or attached to your court order in a document called Appendix A. For full-service child support cases, the notice parents receive from the county agency will provide more information about the calculation.

For other cases, the party must calculate the cost-of-living adjustment to include with their motion. A 2014 Guide to Child Support and Spousal Maintenance Cost-of-Living Adjustments is available from the Legislative Reference Library. The guide may help parents understand the process, but parents should be aware the guide has not been kept up-to-date.

Parties can look up the CPI on the U.S. Bureau of Labor Statistics website. In most cases, the motioning party will select the box for (CPI-U) Minneapolis-St. Paul-Bloomington, MN-WI, All items 1967. However, the court may specify a different CPI. The 1982 base year may be used but only if the 1967 base year was not used in a previous adjustment.

Full service cases

The child support office automatically applies cost-of-living adjustments on cases that meet all these criteria:

• Receive full services from the child support office
• The court order includes basic support
• The court order requires a cost-of-living adjustment.

The increase will take effect automatically on May 1 of the year the case is scheduled for a cost-of-living adjustment. The adjustment will take effect unless the parent who owes support files a Notice of Motion and Motion to Stop COLA or both parents enter into an Agreement and Order to Waive (or Partially Waive) Cost-of-Living Adjustment.

Income withholding-only and spousal maintenance-only cases

The child support office does not process cost-of-living adjustments for income withholding-only and spousal maintenance only cases.

If your court order provides for a cost-of-living adjustment, you need to take action to have the amount adjusted. To learn how to do this, read A Guide to Child Support & Spousal Maintenance Cost-of-Living Adjustments on the Minnesota Reference Library's website.

On these cases, the adjustment will take effect on the date the court ordered, unless the parent who owes support files a Notice of Motion and Motion to Stop COLA or both parents enter into an Agreement and Order to Waive (or Partially Waive) Cost-of-Living Adjustment.

Full-service cases

Both parents will get a notice about a cost-of-living adjustment at least 20 days before the date the increase takes effect.

Income withholding-only cases

The parent applying for the adjustment must mail a notice to the other parent 20 days before the date the increase takes effect. If the court makes the adjustment, the parent should send their updated order to their county worker. Even if a county makes the adjustment on a case, it will not mail a notice to either parent.

These notices are included in Appendix A, which is attached to every support order in Minnesota. Both parents should read the information in Appendix A so they know and understand the law.

There are two options to stop the COLA if parents who owe child support can prove their gross income, as defined in law at Minn. Stat. § 518A.29, has not increased enough to cover the COLA:

• Agreement and Order to Waive (or Partially Waive) COLA:
  • Both parents may agree to waive or partially waive the cost-of-living adjustment using the Agreement and Order to Waive (or Partially Waive) Cost-of-Living Adjustment form and instructions available on the Minnesota Judicial Branch website
  • The county attorney's office must approve the agreement, so it is important to contact your county child support office at least a week ahead of the effective date of the adjustment
  • The county child support office will help parents enter into an agreement to waive or partially waive the COLA, obtain the approval by the county attorney's office and file the Agreement and Order to Waive (or Partially Waive) Cost-of-Living Adjustment for with the court
  • The county child support office may ask for proof of income, such as tax forms for the last three years, from the parent who owes child support
  • The court must approve the agreement and sign the order
• Motion to Stop COLA:
  • The parent who owes child support must file the Notice of Motion and Motion to Stop COLA with the court administrator no later than the last business day before the adjustment effective date. The parent must also serve copies by first-class mail to the other parent. If the county child support office maintains the case, serve copies to the county office as well.
  • If the parent who owes child support properly serves and files a motion asking to stop the adjustment, the child support office will wait for the court decision before adjusting the child support. If the court orders a cost-of-living adjustment, it will take effect on the date originally listed in the cost-of-living notice.

Forms and answers to frequently asked questions about cost-of-living adjustments are available at the county court administrator's office or on the Minnesota Judicial Branch's Self-Help Center website.

Hearings

At a contested cost-of-living hearing, the parent who owes support must show that he or she did not have an increase in income to cover the cost-of-living adjustment. Copies of tax returns for the last three years are helpful for the court to review when determining whether to grant the request. The court or child support magistrate may direct that all or part of the adjustment not take effect. If an adjustment is ordered, it is effective on the date originally listed in the cost-of-living notice.

• Full service cases: The hearing on a motion contesting the cost-of-living adjustment will follow the expedited process.
• Income withholding-only cases: The hearing on a motion contesting the cost-of-living adjustment will be held in district court.

The Service members' Civil Relief Act has specific requirements when a notice to service members is or is not received. Under both conditions, the act allows more time for the service member to contest a cost-of-living adjustment. The stay period must be at least 90 days. The stay can be extended under specific requirements. If the stay is not granted or extended, the service member must properly contest the cost-of-living adjustment.

When a service member does not contest a cost-of-living adjustment properly, the adjustment will take effect as of the date it would have become effective without a stay request.

State laws can be found on the Minnesota Office of Revisor of Statutes website.

Cost-of-living adjustment

• 42 United States Code, sections 666(a)(10)(A)(i)(II) (Supp. IV 1998 & Supp. V 1999)
• 45 Code of Federal Regulations, section 303.8
• Minnesota Statutes, section 518A.75

Contesting the cost-of-living adjustment

• Minnesota Statutes, section 518A.75
• Servicemembers Civil Relief Act (SCRA)
• 50 United States Code appendix, sections 521(d) and 522 (2006)