How to calculate rental income for child support : During a divorce and/or child support procedure, the parties frequently crunch (and re-crunch) figures to try to estimate what their support obligations or legal entitlements would be. The payor will presume that the net pay reported in his or her paycheck is the only income that would be considered for child support purposes.
Section 505 of the Illinois Marriage and Dissolution Marriage Act (IMDMA) provides that all income from all sources shall be considered in the calculation of support. All income includes, but is not limited to, rental income, stock dividends, business income, cash tips, side jobs, part-time jobs, etc.
How to calculate rental income for child support
- There is no magic formula to calculate rental income for child support.
- Rent is another source of income
- Rental income is taxable and, in general, is considered income for child support and maintenance reasons.
- Many people claim that rental revenue should not be counted if it is utilize to pay off the property’s mortgage.
- Many judges, however, continue to treat rent as income, and it should always be revealed to the judge.
How to calculate rental income for child support
Retirement/social security income
Retirement/social security income that was not previously included as part of a property settlement is another source of income that can be used for support reasons. For example, if you or your spouse receives non-marital retirement benefits that are susceptible to partition in your divorce, it should still be counted as income for any support/maintenance payments.
What is considered income for child support in California?
Income such as commissions, salaries, royalties, wages, bonuses, rents, dividends, pensions, interest, trust income, annuities, workers’ compensation benefits, unemployment insurance benefits, disability insurance benefits, social security benefits, and spousal support actually received from a person is considered income for child support
How is child support calculated ?
The child support formula based on many factors
- how much money each parent makes,
- additional income either parent may receive,
- how many children are in need of support,
- how much time each parent spends with his or her children,
- health insurance expenses,
- daycare expenses etc.
What age does child support end in California?
child support age in California is 18 years old
Top tips on calculating child maintenance
- Calculate accurate and up to date gross income figures
- Calculate additional income
- Calculate Special Expenses
- Consider applying for a “top up” maintenance order
Child support exemptions
Temporary exemptions –
You can apply for a temporary exemption when you’re:
- In a New Zealand or overseas prison, hospital, or a treatment facility for at least 13 weeks in a row
- suffering a long-term illness or injury for at least 13 weeks and cannot do paid work because of the illness or injury
- under 16 years old.
Permanent exemption
If you are the victim of a sex offense, you can apply for a permanent exemption from paying child support for a child.
Final Words :
Overall, it is critical to report all of your revenue in your financial declaration . It is then up to your attorney and the judge to decide whether the extra income will be factored into the calculation of maintenance and/or child support.
Disclaimer
This information is for educational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given
