14.A Assignment Scenarios

Appendix 14.A – Assignment Scenarios

Purpose:

The following are several scenarios to illustrate what happens when a custodial parent receives POWER grants and the non-custodial parent pays child support.


Note: For all of these scenarios, the custodial parent has never received POWER in the past, and the application for POWER and payments received occurred after October 1, 2009.

Scenario 1 (One Family):

Facts

  • 2009 Child Support Order – Family “A”
    • Non-custodial parent to pay $400
  • Now:
    • Custodial parent receives $500 POWER grant
    • Non-custodial parent pays $400 child support

Analysis:  When the custodial parent applies for and receives POWER, she assigns her rights to her child support for the time period she receives POWER.  The assignment is limited to the amount of child support that accrues during the assistance period, and the assignment will not exceed the cumulative amount of unreimbursed public assistance (URPA).  

The State of Wyoming will retain the $400 child support payment to offset the $500 POWER grant, and the child support payment will reduce the URPA balance from $500 to $100.

Scenario 2 (One Family):

Facts

  • 2009 Child Support Order – Family “A”
    • Non-custodial parent to pay $400
  • Now:
    • Custodial parent receives $300 POWER grant
    • Non-custodial parent pays $400 child support

Analysis:  When the custodial parent applies for and receives POWER, she assigns her rights to her child support for the time period she receives POWER.  The assignment is limited to the amount of child support that accrues during the assistance period, and the assignment will not exceed the cumulative amount of URPA.  

The State of Wyoming will retain $300 of the child support payment to offset the POWER grant, and the State Disbursement Unit (SDU) will disburse the remaining $100 to the family.  Because the child support payment exceeded the POWER grant amount, the URPA balance will be $0.

Scenario 3 (One Family):

Facts

  • 2009 Child Support Order – Family “A”
    • Non-custodial parent to pay $400
    • Judgment to the custodial parent for $1,000
  • Now:
    • Non-custodial parent arrears are $1,500
    • Custodial parent receives $300 POWER grant
    • Non-custodial parent pays $400 child support

Analysis:  When the custodial parent applies for and receives POWER, she assigns her rights to her child support for the time period she receives POWER.  The assignment is limited to the amount of child support that accrues during the assistance period, and the assignment will not exceed the cumulative amount of URPA.  Any child support arrearages that accrue prior to the period the family receives POWER benefits will no longer be assigned.  

The State of Wyoming will retain $300 of the child support payment to offset the $300 POWER grant, and the SDU will disburse the remaining $100 to the family.  It does not matter how much money the non-custodial parent owes the custodial parent when she applies for and receives POWER because those arrears are not assigned to the State of Wyoming.  The URPA balance will be $0.  

Scenario 4 (One Family – SASFA):

Facts

  • 2009 Child Support Order – Family “A”
    • Non-custodial parent to pay $400 
  • Custodial parent applies for State Adult Student Financial Aid (SASFA) POWER
  • Now:
    • Custodial parent receives $500 POWER-SASFA grant 
    • Non-custodial parent “A" pays $600 child support

Analysis:  When a custodial parent meets the requirements of the SASFA program and is eligible for a POWER-SASFA payment, the custodial parent is not required to cooperate with child support, and child support should not be assigned to the State of Wyoming.  

The SDU will disburse the $600 child support payment to the family, and there will not be an URPA balance.

Scenario 5 (Two Families – Siblings):

Facts

  • 2008 Child Support Order – Family “A” (Custodial Parent, Non-Custodial Parent “A”, Child “A”)
    • Non-custodial parent to pay $400
  • 2009 Child Support Order – Family “B” (Custodial Parent, Non-custodial Parent “B”, Child “B”)
    • Non-custodial parent to pay $250
  • Now:
    • Custodial parent receives $500 POWER grant for Child “A”
    • Non-custodial parent “A” pays $400 child support the 5th of the month
    • Non-custodial parent “B” pays $250 child support the 15th of the month

Analysis:  When the custodial parent applies for and receives POWER, she assigns her rights to her child support for the time period she receives POWER.  The assignment is limited to the amount of child support that accrues during the assistance period, and the assignment will not exceed the cumulative amount of URPA.  

The State of Wyoming will retain the $400 child support payment from Non-Custodial Parent “A” and $100 from Non-Custodial Parent “B” to meet the URPA amount.  The SDU will disburse the remaining $150 child support payment from Non-Custodial Parent “B” to the family.  Because the State of Wyoming retained the $400 child support payment from Non-Custodial Parent “A” and $100 of the child support payment from Non-Custodial Parent “B”, the URPA balance is $0.

Scenario 6 (Two Families – Siblings):

Facts

  • 2008 Child Support Order – Family “A” (Custodial Parent, Non-Custodial Parent “A”, Child “A”)
    • Non-custodial parent to pay $400
  • 2009 Child Support Order – Family “B” (Custodial Parent, Non-custodial Parent “B”, Child “B”)
    • Non-Custodial Parent to pay $250
  • Now:
    • Custodial Parent receives $500 POWER grant for Child “A”
    • Non-Custodial Parent “A” pays $0 child support
    • Non-Custodial Parent “B” pays $700 child support

Analysis:  When the custodial parent applies for and receives POWER, she assigns her rights to her child support for the time period she receives POWER.  The assignment is limited to the amount of child support that accrues during the assistance period, and the assignment will not exceed the cumulative amount of URPA.  

Even though Child “B” is not receiving POWER, Child “B” is in the household with Child “A” who is receiving POWER.  Therefore, the $700 child support payment from Non-custodial Parent “B” will be retained by the State of Wyoming up to the amount of the POWER grant of $500, and the SDU will disburse the remaining $200 to the family.  The URPA balance will be $0.

Scenario 7 (Caretaker/Relative):

Facts

  • 2009 Child Support Order – Family “A”
    • Non-Custodial Parent “A” to pay $400 
  • Custodial Parent from Family “A” and “Aunt” obtains guardianship of Niece and Nephew from Family “C”
  • Now:
    • Custodial Parent “Aunt” receives $500 POWER grant for Niece and Nephew only (Nothing for Child “A”) 
    • Non-Custodial Parent “A" pays $600 child support

Analysis:  When a custodial parent receives child support for children that have never been on POWER and then applies for POWER for caretaker children, the child support for the children that have never been on POWER should not be assigned.

When the Wyoming CSE Program receives the public assistance referral for Niece and Nephew (Family “C”), the District CSE Office will create 2 POSSE cases for the family as described in 6.3 Intake – POSSE Case where one case will be Aunt vs. Biological Mom for both children, and the other case will be Aunt vs. Biological Father.  The case worker will contact the appropriate person at the SDU and ask that the “Never Assign Arrears” box be marked.  The District CSE Office will establish child support obligations as shown in Chapter 8 Establishment for both parents.

When the Non-Custodial Parent “A” makes the $600 child support payment, the SDU will disburse the $600 child support payment to Family “A” (Custodial Parent and Child “A”) and will not retain any of it to reduce the URPA balance for Niece and Nephew (Family “C”).  The URPA balance for Niece and Nephew will be $500.

Scenario 8 (Caretaker/Relative):

Facts

  • 2009 Child Support Order – Family “A”
    • Non-Custodial Parent “A” to pay $400 
  • Custodial Parent “Aunt” obtains guardianship of Niece and Nephew from Family “C”
    • 2010 Child Support Order – Aunt vs. Mom “C”
      • Mom “C” ordered to pay Aunt $300
    • 2010 Child Support Order – Aunt vs. Dad “C”
      • Dad “C” ordered to pay Aunt $450

Now:

o Custodial Parent “Aunt” receives $500 POWER grant for Niece and Nephew only (Nothing for Child “A”) 

o Non-Custodial Parent “A" pays $0 child support

o Mom “C” pays $300 child support on the 5th of the month

o Dad “C” pays $450 child support on the 15th of the month

Analysis:  The URPA balance for Family “C” is considered one amount and may be reduced by child support payments made by either the Mom “C” or Dad “C”.  It is not a separate obligation for each parent.  

When the SDU receives the $300 child support payment from Mom “C,” it will retain the child support and reduce the URPA of $500 to $200.  Then, when the SDU receives the $450 child support payment from Dad “C,” the SDU will retain $200 for the State of Wyoming and reduce the URPA balance to $0.  The remaining $250 will be forwarded to the Aunt for the care of Niece and Nephew.

As a side note, because Non-Custodial Parent “A” did not pay child support in the month, the child support arrears due to Custodial Parent “A” increase by $400.