What is Gross Income for Child Support Purposes

In New Mexico child support is determined under the guidelines based on gross income of both parties. Generally, what is included in Gross Income? Gross income includes income from any source, and may include, but is not limited to, income from salaries, wages, commissions, bonuses, dividends, severance pay, pensions, interest, trust income, annuities, capital gains, Social Security benefits, Workers’ Compensation benefits, unemployment insurance benefits, disability insurance benefits, recurring gifts, prizes, and spousal maintenance. You can find this definition under NMSA 40-4-.11.1.

Generally speaking, the Court may choose not to include as income money earned from a non-recurring source. For example, if you receive a one-time personal injury settlement, the Court will likely not consider that money as income for child support purposes. There are a lot of gray areas that impact on the whole issue of gross income that have an impact on the bottom line of child support under the guidelines. Thus, it’s important to assess and evaluate the income and the true income (even potential income) for both parties to get an adequate picture of what the court may do regarding a child support award.

To learn more about gross income and how a determination of such income can impact on your child support obligation contact our child support experts at info@JusticeLegalGroup.com or call us at 505-880-8737.