What is “income” for the purpose of child and spousal support?

Child and Spousal Support calculations are one of the most complicated issues in a divorce.  California Family Code Section 4508 governs how income is calculated for the purpose of support.

Before spousal support or child support can be calculated, each party must disclose their income on an Income and Expense Declaration (FL 150), one of the most crucial forms in your child support case. Calculating support may be as simple as looking at a paycheck stub, but if the party makes income from a variety of sources, be sure to contact a family law attorney to help you run a Dissomaster account because the calculations can actually be sophisticated and complicated.

The Court has wide discretion when determining what is income for the purposes of support and has included benefits and here are some examples of income used for support calculations under Family Code 4508 that you may not expect:

·       Commissions

·       Royalties

·       Bonuses (Marriage of Ostler/Smith)

·       Rents

·       Dividends

·       Pensions

·       Interest

·       Trust income

·       Annuities

·       Social Security benefits

·       Military allowances for housing and food

·       The value of company car

·       Subsidized housing as income. 

·       Re-occurring gifts

I often talk with clients who remember generous relatives who gave annual gifts of $14,000 to their grandchildren and children. If those gifts have not been included on the FL – 150, you should make sure that the other parent discloses these gifts on the income and expense declarations as reoccurring and regular monetary gift from a payer’s parents are income for the purpose of support.

Want to learn more about what is NOT included for support payments? Click here to read about what is not considered income under California Family Code Section 4508.

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