What Income Sources Does The Court Use To Calculate Child Support?
Are you going through a divorce and wondering how a judge will determine child support payments? It's important to know what sources of income are factored into your eventual child support payment so that you can be prepared.
Annuity Income
There are two kinds of annuity incomes, though many people do not realize that annuity income can be factored into their child support payments. While some people think of the annuity that they receive as retirement income, it can also include annuities from personal injury settlements. Since these incomes are guaranteed for the rest of your life, they are factored into child support payments.
Retirement Income
Any pension or retirement income that you receive would be included if you are receiving it while your child is eligible for child support. If you are not retired at the time child support is issued, it may be modified later to factor in that additional income.
Assets That Don't Produce Income
If you do not have any active income or have plenty of assets that do not produce income, the court could factor those assets into your child support payments. This is often the situation when a spouse has many assets and selling them would not be considered a sacrifice to liquidate. For example, you won't be told to liquidate your only vehicle, but you may be told to do so if you have several vehicles.
Assets That Produce Income
Any assets that do produce an income, such as rental property, will be factored into child support payments. Transferring assets or reducing the amount of income you receive may not have an effect on child support payments either, since a judge can base child support on what those assets are capable of earning.
Disability Benefits
If you are currently receiving any sort of disability benefit, then it is considered income that can be used for child support payments. This income is designed to support raising your child because you are unable to work, so typically it would be factored toward child support payments.
Prize Winnings
Winning any sort of price would be considered taxable income and factored into your support payments. This could include going to the casino and hitting a jackpot or winning the local lottery. It does not matter how you take the winnings either since lump sum and distributed payments will be considered when deciding child support.
Contact a divorce lawyer for more information regarding divorce law.