Hi,
So if a person receives income in excess of $15,000 a year for the past 3-4 years and it is gift income in the form of bank deposits every 3-4 months of the year how does that work with regard to determining their gross monthly income? How is that figured as a percentage of his or her recurring income paid for child support?
Thanks,
Sidetracked
It is up to the court to determine whether to consider the gifts income, but I would make an argument that if gifts were received for the past 3 - 4 years, and you can put on evidence that these gifts will continue, that the gifts should be regular, recurring income. If the gifts are irregular, I would ask (like the guidelines state) that the other party should have to pay a percentage of the irregular income when received.
Thank you so much for your help.
What is a customary percentage of irregular income? Could you please provide some guidance on that matter? I suppose this method is argued if the judge does not want to simply take the amount and divide by 12 months?
Thanks
Sidetracked
The easiest way to use the percentage method is to use the party’s gross income to child support ratio. For example: if a party’s gross income is $2,000 per month, and their court ordered child support obligation is $500 per month, the child support obligation represents 25% of his or her gross income. That party would be responsible to pay 25% of any non-recurring or irregular income as child support.
There are arguments to be made that the percentage should be based on net income to child support as the non-recurring or irregular income could be taxed at a different level than the party’s regular income. In the end, this is a matter to be left to the judge’s discretion. I would look at all possible scenarios so you aren’t surprised by any arguments that may be made by the other party.