Calculating Your Income for Child Support Proceedings
If you are a divorced parent, you probably recognize your responsibility for helping to provide financially for your child. In most Illinois cases, the parent with fewer parental responsibilities and less parenting time is obligated to make child support payments to the other parent. While the law that dictates the calculation of such payments is set to change at the beginning of 2017, the current statute takes into account two primary factors: the number of children being supported and the net income of the supporting parent. But, what does net income include?
According to the Illinois Marriage and Dissolution of Marriage Act, net income is defined as the “total of all income from all sources” minus certain allowable deductions. By law, these deductions include:
- Properly calculated federal taxes;
- Properly calculated state taxes;
- Social Security/FICA payments;
- Retirement contributions required by law or as a condition of employment;
- Union dues;
- Premiums for health insurance;
- Premiums for life insurance ordered by the court to secure child support payments;
- Previous obligations for child support and spousal maintenance;
- Obligations for maintenance as part of the current divorce proceedings; and
- Expenditures required for the production of income, such as student loans.
In most cases, the calculation of net income is fairly straightforward. Most supporting parents generate income through hourly wages or a regular salary, and the deductions are relatively easy to determine. In other situations, however, things can become much more complex.
If you own a business, for example, calculating your actual income can be very complicated. While you may not draw much of a salary, depending on how you have structured your company, the court may determine that a certain portion of your business revenue should be used for the purposes of supporting your child. Likewise, your businesses expenses and other costs associated with generating income should also be taken into account.
Because the law states “all income from all sources,” your child support order could be affected by factors you may not have considered. For example, if you have recently inherited a sum of money or began receiving payments from a trust, these contributions must be taken into account as income.
If you are in the midst of a child support dispute, the proceedings can quickly become complex and confusing. That is why it is important to have an experienced Kane County family law attorney at your side. Call 630-232-9700 to schedule your confidential consultation at The Law Offices of Douglas B. Warlick & Associates today.