What is your Income?

The most basic question that must be answered in determining child support and spousal support (alimony) is “what is your income?” This is fundamental because child support guidelines determine payment obligations based on, among other things, one’s gross income. Sounds simple, but calculating gross income is very complex. Here are some questions you need to ask when it comes to determining your income and thus, your potential obligation.

1. How often are you paid? Weekly, monthly, bi-weekly, twice a month? Hourly or salary—how you answer this question can impact on the amount you earn.

2. Do you have overtime? Overtime is considered but is it consistent? Inconsistent? Are you given a one time bonus or is it spread out over the year?

3. What is your taxable income? Regardless of what you deduct for “business expenses” not all expenses are allowed to be deducted for income purposes for child support. For example, think of depreciation. The IRS allows it, the courts do not.

4. What are your business expenses? Reasonable business expenses can be reduced from your income

5. Do you have investment income?

6. Do you have interest income?

7. Do you get work related reimbursements? Housing? Gas? Per diem? All can be included in your income

These are just a few of the questions that become relevant to determining your income. Don’t be taken advantage of. Know your rights. Contact the child support experts at Justice Legal Group by emailing us at info@JusticeLegalGroup.com or calling us at 505-880-8737.