New York

Cost of Living Adjustments (COLA) for Child Support Orders

Authored By: Legal Services NYC - Legal Support Unit LSC Funded
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FAQ

What is a cost of living adjustment?
A cost of living adjustment (COLA) of a child support order is when the amount of child support is increased because the cost of living has gone up. You do not have to show any change in your own personal circumstances to get a COLA.
Which child support orders can get a COLA?

If the child suport is paid through the Support Collection Unit (SCU), the order will eligible for the COLA process unless:

  • the person who is supposed to pay support receives public assistance or SSI, or

  • the Support Collection Unit (SCU) has no address for the payer.

COLA review applies to small $25/month and $50/month orders as well as orders based on a percentage of income.

How often can you get a COLA?
You can get a COLA once a year, but you cannot get the first one until two years have passed from the date the child support order was made. In other words, the order must be at least 24 months old to be eligible for the COLA process.
Who can ask for a COLA?
Either the parent who receives the child support, or the parent who pays the child support.
Is a COLA always given every year?
No, there has to have been a certain amount of change in the cost of living in your area. This is decided by looking at something called the Consumer Price Index for urban areas (CPI-U), which is published by the federal government. There has to have been a change of at least 10% from the year of the most current order, or since 1994, whichever is later.
How is the COLA calculated?

The amount in the order is changed by following these steps:

1. Add together how much cost of living has gone up each year according to the Consumer Price Index for Urban Areas (CPI-U) since the last order, or beginning with 1994, whichever is later;

2. Multiply that number by the amount in the court order;

3. Add that number to the amount of the current order.

For example:

1998 order for $10,000/year

1. Average annual percent change in CPI-U:

1998 = 1.6%
1999 = 2.2%
2000 = 3.4%
2001 = 2.8%
Total 10.0%

2. 10% x $10,000 = $1,000

3. $10,000 + $1,000 = $11,000 (the amount of the adjusted order)

What is the process?

For orders paid for people who are on public assistance, the review is automatically done. For other cases, SCU issues a notice to both parties and either one can request a review.

No financial information is required from, or about, the parties. After making the calculations above, SCU adjusts the order and sends it to parties. SCU also sends a copy of the adjusted order to the court that issued the prior order (which could be the family court or the supreme court). There is no involvement of the court or the support magistrate.

When will the adjusted order go into effect?

The adjusted order will go into effect on whichever date is later:

  • 60 days following the date the adjusted order is issued; or

  • 24 months after the date of the order under review.

After the effective date of the adjusted order, the first payment of the new amount should be made the day when the next payment of support would ordinarily be made under the old order.

What if I disagree with the adjusted order?

Either party (but not someone receiving public assistance), or the SCU, may file written objections to the adjusted order with the court. The objections must be filed within 35 days after the adjusted order is mailed, and a copy must be provided to the other party, and to the SCU. The objections must be made to the court that issued the prior order (family or supreme court).

When objections are received by the court, the adjusted order does not go into effect, and the court schedules a hearing and notifies all the parties (including SCU).

How does the Court decide when there has been an objection?

There is no need to show a change of circumstances to justify the change in the order. SCU does not have to provide financial information to support its adjustment, and the parties do not offer evidence in support or in opposition to the adjustment.

The judge or support magistrate has only two options:

1. S/he can issue a new order based on the percentages in the Child Support Standards Act (CSSA) or

2. S/he can issue an order of no adjustment where applying the CSSA shows that no adjustment should be made.

If a new order is made based on the CSSA, that order could be more, or less, than current order. For more information on how the Child Support Standards Act (CSSA) affects child support amounts, you can go to: http://www.ci.nyc.ny.us/html/hra/html/serv_ocse_ocsecalc.html#act

If there is a new order after the objection is considered, when will it go into effect?

The date that the court's new order will go into effect will be the earlier of the following two choices:

  • The date of the court's decision, or

  • The date the adjusted order would have been effective if there had been no objection.