Alabama Rule Judicial Administration 32(B)(9)
(9) Credit for Third-Party Payment to Child.
(i) Social Security retirement, survivor’s, or disability insurance
benefits, veteran’s benefits, railroad retirement, or any other third-
party payments paid for the benefit of the children based on the
support obligor’s earnings record or other eligibility requirement
attributable to the support obligor shall be credited against that
parent’s support obligation, for so long as that support obligation is
being received by the support payee, as follows:
(1) Determine the total child-support obligation; then
(2) Determine the monthly benefit amount that is attributable to
the obligor and that the support recipient receives for the
children and then subtract that amount from the total child-
support obligation.
(a) If the children’s obligor-based benefit exceeds the total
support amount, then no additional support amount should
be ordered.
(b) If the children’s obligor-based benefits are less than the
obligor’s total support amount, then the difference between
the benefits received for the children and the total support
amount becomes the ordered child-support obligation.
(ii) The following payments made for the benefit of a child by a third
party shall not be credited toward the support obligor’s child-support
obligation:
(1) Payments that are not based on the support obligor’s
earnings record or other eligibility requirement attributable to the
support obligor;
(2) Any payments resulting from the disability of the child;
(3) Any payment received in excess of the amount of child
support owed to the child;
(4) Any payment received by the child shall not be credited
against arrearages that accrued before the date the obligor was
deemed eligible to receive the third-party payment;
(5) Social Security income benefits paid to the child;
(6) Adoption subsidy paid to adoptive parents of a special-needs
child pursuant to ‘ 26-10-20 et seq., Code of Alabama 1975.
What does this mean if your child is receiving payments from the non-custodial parent’s government benefits or retirement?
This means that your child support obligation will be reduced or possibly eliminated in full if the amount you are ordered to pay is paid in full by your retirement or government benefits.
Comment to Adoption of Rule 32(B)(9)
Effective June 1, 2018
A new subdivision (9) was added to subsection (B) and what was
subdivision (9) was renumbered subdivision (10). The new subdivision (9) allows
the obligor to receive credit against child-support obligations for certain third-
party payments made directly to the payee. Subsection (B)(9)(i) is based on
Section 3.07 (Social Security Benefit Credit) of the 2013 Michigan Child Support
Formula Manual (effective January 1, 2013), which provides credits for certain
benefits provided by government insurance programs, with the addition of credit
for other third-party payments such as railroad retirement benefits.
Subsection (B)(9)(i) is consistent with current Alabama caselaw. In
Goldman v. Goldman, 197 So. 3d 487 (Ala. Civ. App. 2015), the Alabama Court
of Civil Appeals held that the veteran’s disability benefits of the former husband
were to be considered income for purpose of calculating his child-support
obligation. A noncustodial parent cannot be required to pay child support when
Social Security payments received by a child based on a parent’s disability
exceeds the guideline amounts. Self v. Self, 685 So. 2d 732 (Ala. Civ. App.
1996). The obligor is also entitled to a credit against his or her obligation when a
child receives benefits based on the obligor’s retirement benefits. Adams v.
Adams, 107 So. 3d 194 (Ala. Civ. App. 2012). Notwithstanding, if the third-party
payment to the child is stopped for any reason, the child support owed by the
obligor remains the amount of the existing child-support order. For example, if a
child is receiving a third-party payment from Social Security that terminates when
the child reaches the age of 18, the obligation of the obligor to pay the court ordered child support will remain in effect until the child reaches the age of
majority.
The exclusions of credit enumerated in subsection (B)(9)(ii) reflect current
Alabama law. Alabama has consistently held that credit is not allowed for a
benefit a child receives based on the work history of someone other than the
obligor. See Hebert v. Stephenson, 574 So. 2d 835 (Ala. Civ. App. 1990). See
also the court’s discussion in Hebert regarding child-support credit based on the
child’s own disability. 574 So. 2d at 837. Also, the exclusion of credit for Social
Security income benefits in subsection (B)(9)(ii)(5) is consistent with Lightel v.
Myers, 791 So. 2d 955 (Ala. Civ. App. 2000), holding that a parent should not get
credit for the Social Security income benefits payable to the child as a
“supplement to income” for the child based on the child’s disability, as was
clarified by the court in Adams v. Adams, 107 So. 3d 194 (Ala. Civ. App. 2012),
which held that credit could be given to a parent whose child received Social
Security retirement benefits based on the parent’s work history and, thus, are a
“substitute income source.” Likewise, the exclusion of credit for adoption-subsidy
pay in subsection (B)(9)(ii)(6) is consistent with current law because the adoption
subsidy is not a “substitute income source”; rather, it is supplemental to the
adoptive parents’ income. W.R. v. C.R., 75 So. 3d 159 (Ala. Civ. App. 2011).
*For a more in-depth look at the cases mentioned herein, visit the Family Law Case Law Updates page at Family Law Case Updates
*IF you Think you are due a credit toward your child support payments due to the new law that went into effect, or, if you think your child is due to receive third-party payments to reduce your child support obligation, call 251-943-4870 today!
I would love to evaluate your case and assist you!
