An Annual Review of child support is a process where the child support agreement is revisited yearly to ensure that the payments remain fair and appropriate. This review considers changes in either parent’s income, the child’s needs, or other financial circumstances. Regular reviews can prevent future disputes by keeping child support up to date with the changing financial realities of both parents.

There are different types of annual reviews, each with its own process and purpose. Let’s break down the review options:

1. No Review

The No Review option means that the child support agreement is set without an annual review. Child support payments remain fixed unless one party specifically requests a change, usually by going to court or through a formal agreement.

Advantages of No Review:

• Simplicity: Once child support is agreed upon, there’s no need for annual reviews, making the arrangement simple and straightforward.
• Predictability: Both parents know exactly what the payments will be without needing to revisit the agreement yearly.

Disadvantages of No Review:

• Lack of Flexibility: Without annual reviews, the child support amount may become outdated if one parent’s income changes significantly, leading to unfair payments over time.
• Potential for Future Disputes: Without regular updates, the receiving parent may need to request a change through legal action, which can be costly and time-consuming.

When to Use No Review:

• This option works when both parents expect stable financial situations and prefer a simple, predictable child support arrangement without the need for regular adjustments.

2. Simple Review

A Simple Review is a routine, automatic annual check of the child support agreement. This type of review typically involves both parents submitting updated income information to determine if any adjustments to child support are necessary based on changes in financial circumstances.

Advantages of Simple Review:

• Automatic Adjustments: A simple review ensures that child support remains fair and reflects both parents’ current financial situations without requiring legal action.
• Prevents Disputes: By reviewing the agreement annually, it helps prevent disputes by keeping child support payments up to date with income changes.

Disadvantages of Simple Review:

• Additional Administrative Work: Both parents need to submit income documentation yearly, which can be seen as an extra administrative burden.
• Potential for Small, Frequent Changes: Small changes in income may lead to regular adjustments, which could be inconvenient for parents who prefer more stability in payments.

When to Use Simple Review:

• This option is ideal for situations where one or both parents’ incomes fluctuate regularly, such as self-employed individuals or those with variable income sources. It ensures that payments stay fair as circumstances change.

3. Requested Review

In a Requested Review, one or both parents can request a review of the child support agreement if they believe a change is necessary. This option is typically used when there is a significant change in financial circumstances, such as job loss, a major pay increase, or a change in the child’s needs.

Advantages of Requested Review:

• Flexibility: Parents can request a review when needed, rather than being locked into annual reviews. This allows adjustments to be made only when truly necessary.
• Avoids Unnecessary Reviews: If both parents’ incomes and the child’s needs remain stable, there’s no need for an annual review, avoiding unnecessary paperwork and legal involvement.

Disadvantages of Requested Review:

• Risk of Delays: If one parent refuses to cooperate with the review or delays providing financial information, it can create disputes and prolong the process.
• Reactive, Not Proactive: This type of review only happens when someone requests it, meaning child support payments may not stay aligned with changing circumstances until one parent pushes for a review.

When to Use Requested Review:

• Requested reviews are best when both parents expect minimal changes in their financial situations but want the flexibility to revisit the agreement if major changes occur.

4. Retroactive/Retrospective Review

A Retroactive or Retrospective Review occurs when child support is reviewed after the fact, often when one parent has experienced a significant financial change (positive or negative) that wasn’t accounted for at the time. In this case, child support may be adjusted retroactively, meaning payments can be increased or decreased for past periods.

Advantages of Retroactive/Retrospective Review:

• Corrects Past Discrepancies: If one parent experienced a major financial change that wasn’t reflected in child support, retroactive reviews can ensure that payments are fair for both parents and the child.
• Ensures Fairness: This type of review helps balance out situations where the child support payor’s income either increased or decreased significantly, but payments weren’t adjusted immediately.

Disadvantages of Retroactive/Retrospective Review:

• Complexity: Retroactive reviews can be complicated and may require court involvement to determine the correct amount of child support for the past periods.
• Financial Burden: If a retroactive increase is applied, the payor may be required to make up for past underpayments, which can create a sudden financial burden.

When to Use Retroactive/Retrospective Review:

• Retroactive reviews are typically used when a significant financial change occurred in the past that wasn’t immediately addressed, such as a large pay raise, job loss, or the discovery of hidden income.

Advantages and Disadvantages Summary:

Conclusion

Each annual review option for child support has its own advantages and disadvantages, depending on the financial stability of both parents and the likelihood of income changes. The Simple Review ensures that payments remain fair and up to date with minimal conflict. The Requested Review offers flexibility when significant changes occur. Retroactive/Retrospective Review allows for correcting past payment discrepancies, while the No Review option offers predictability but may lead to outdated payment amounts over time.

Choosing the right review option depends on the needs of the parents and the child, with Simple Review often being the best for consistent, fair support adjustments.