(949) 553 0304

Categories

child support attorney Orange County; The Maggio Law Firm

What Can And Cannot Be Considered As Income For Child Support

child support attorney Orange County; The Maggio Law FirmDivorce is always a difficult period for the couple going through the procedure. The proceedings, however, are much harder if there are children involved. Children below the age of 18 are involved in the unpleasant business of divorce despite their unwillingness. Divorce settlements often do not proceed smoothly especially when there are issues revolving around child support. Debates often arise when it comes to calculating the percentage of an individual’s income that goes into child support. Confusions can also arise when it comes to determining the type of income that can and cannot be considered as child support.

Income considered as child support

Generally, income is a broad term that encompasses the monetary benefits an individual attains from work, pensions, dividends, rental properties, trust funds, and so on. When it comes to divorce settlements for individuals who own businesses in Orange County, California, income is calculated by subtracting the expenses incurred in the business from the gross revenue generated by the business. Courts may also extend the calculated income to include any monetary benefits that are instrumental in reducing the living expenses of an individual.

Recent laws also classify financial gifts received from an individual’s parents as income.

Details on how much of a person’s income actually goes into child support are explicitly stated under the California Family Code Section 4050. Usually, the amount that goes into child support is calculated by taking into account the incomes of both parents, the time the child spends with each of the parents, and any tax reductions that are applicable. An estimate for the amount to be paid can be calculated using the California Guideline Child Support Calculator that is based on California Child Support Guidelines.

Income that cannot be considered as child support

Deciding income that cannot be considered as child support is a difficult task. It varies according to state laws and sometimes according to what the court decides. Despite uncertainties, there are certain types of income that are not eligible to be considered as child support according to Orange County laws. Benefits arising from life insurance policies, any income that is speculative, stock options that cannot be liquidated, and settlements from disputes relating to personal injury cannot be considered as income for child support. Gifts like cars and household items that are not monetary in nature are not considered income. These are a few situations where the resulting monetary benefits are not considered an actual stable income. Each of these situations is subject to change depending on the final decision taken by the Court.

Getting divorced in California can be complicated!  Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.  

divorce_attorneyGerald A. Maggio is an experienced Orange County divorce and family law attorney and family law attorney located in Irvine, California, serving the Orange County and Riverside areas. Mr. Maggio assists clients with legal issues including divorce, legal separation, divorce mediation, child custody, prenuptial agreements, stepparent adoptions, and other family law issues. Mr. Maggio has practiced law in California since 1999, and founded The Maggio Law Firm in 2005, focusing exclusively on divorce and family law matters.

SHARE

RECOMMENDED

Child custody attorneys Orange County; The Maggio Law Firm

Smart Tips for Stay-At-Home Mothers Facing Divorce

Both you and your former spouse had your own distinct roles while you were married and a stay at home mother. While your ex husband worked outside, you did your...
READ MORE
Orange County divorce attorneys; The Maggio Law Firm

How To Reconcile Your Marriage After A Separation

You could be separated from your spouse for several months or years. But finally, the time has come to get back together once again. It is likely that you did...
READ MORE
lawyer-com-premium-full-2
top-10-full
Ten-Best-full-2
Top Orange County Family Law Attorney
Top Orange County Divorce Lawyer
Best Orange County Family Law Attorney
Top Orange County Divorce Lawyer
top-100-full
Schedule a consultation