Gross income is a funny thing. We think we know what it means. It’s an important concept in family law because gross income is used when calculating spousal support, child support and is the basis for interim division. However, what constitutes gross income for tax purposes isn’t always the same thing for family law matters.
Here is an example. If you are self employed and your tax return defines your gross income as one figure, it’s likely that the figure is a figure made up from your book keeper or accountant. For taxes you can manipulate your gross income by including deductions that aren’t allowed for purposes in family law. Things like depreciation, car payments and others are often added back into your income in family court. Thus, you need to carefully assess your true gross income. Also considered is investment income and income associated with work related benefits, such as car or gas payments.
If you would like to learn more about your gross income or understand how this can impact you please email us at info@justicelegalgroup.com or call us at 505-880-8737.