The calculation of child support is always a mystery to many people. If you are going through a divorce, it's good to have a basic understanding of the process to prepare you for the payments. Here are three things you should know about how courts calculate child support:
Income Includes Nonmonetary Receipts
Your total income is one of the factors that determine how much child support you receive. What you may not know is that it isn't just monetary income that matters. Depending on your state, the computation may include non-monetary sources of income too.
Here are four examples of non-money incomes that may be used in calculating child support:
The main consideration is whether the non-money incomes reduce your personal living expenses. If they do, then they are factored into the calculation of child support.
States Treat Unrealized Income Differently
Courts consider all kinds of income when calculating child support. As you may expect, some of these may only exist on paper. Income that exists on paper, but not received, is known as unrealized income. States have different ways of treating unrealized income, so check your state's laws or consult a lawyer on how your jurisdiction deals with it.
Consider the example of interest from Individual Retirement Accounts (IRA) reinvested back into the IRA. If you live in Ohio, then this unrealized income is used to calculate child support while Tennessee is an example of a state that doesn't treat it as income for calculating child support.
The Actual Amount of Child Support Depends On Different Models
Once the total calculation of the income is determined, the exact amount you pay depends on the model/formula adopted by your jurisdiction. Here are three examples of the most common models for calculating child support:
Child support calculations are complex. In some cases, the court may even use its discretion to come up with a formula it thinks best fits the situation at hand. Therefore, work closely with your lawyer, one like Robert L. Flanagan, to help you understand the process and protect your rights.Share
17 November 2015
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