Determining Income for Child Support Purposes

A parent’s income is important in order to set the amount of child support. The first step of the Child Support Standard Act requires the court to determine how much each parent makes. Income means more than just a person’s take-home pay. Gross income is normally determined by the parents’ most recent federal income tax returns. The court has the ability to add other money to one parent’s income.

Income Under the Child Support Standard Act

Income is defined as money received from

1. Wages earned the most recent federal tax return;

2. Investment income;

3. Workers’ compensation;

4. Disability benefits;

5. Unemployment insurance benefits;

6. Social security benefits;

7. Veterans benefits;

8. Pensions and retirement benefits;

9. Fellowships and stipends;

10. Annuity payments; and

11. Alimony or maintenance paid to a spouse who is a party to the divorce.

The sources of income described above are just the start when determining how much each parent makes. A parent is able to increase or reduce their income at the discretion of the court under certain circumstances.

Additional Payments that can Be Considered Income

The judge can look at other payments a parent receives and include that amount in their income. For example, a support magistrate can raise a parent’s income based on:

• money received from relatives or friends

• non-income producing assets;

• employment benefits, such as meals, lodging, memberships, or cars;

• fringe benefits provided as part of compensation for employment.

If a parent receives $10,000 in medical benefits from their employer, that amount may be added to their income.

Past Income Can be Used to Show Future Earnings

Parents who know they are going to be involved in a divorce sometimes intentionally stop working to lower their income level. The parent will take fewer hours, stop working overtime, or completely give up working altogether. They will then attempt to show the court new tax returns or low-income paystubs. The court does not need to rely on a party’s own account of his, her, or their finances. The judge can look at the parent’s past income or potential future earnings. The judge will then impute income onto the parent.

Imputing Additional Income Based on Degrees

The court can also raise a parent’s income based on their degree. For example, if one parent went to law school but stayed at home during the length of the marriage, the court may raise the parent’s income to that of an attorney with a similar experience. The court can also look at a parent’s college degree and impute annual income to the mother based upon her ability to work full time for minimum wage.

It is important to hire skilled support attorneys like Daniel Szalkiewicz and Cali Madia to argue a parent’s proper income.

Using Technology to Determine Income

Parents may be hiding assets in online accounts. It is important to subpoena these accounts and determine all levels of income that a parent has. Technology can be very useful in the child support process for determining income.