Irregular and or Non-recurring Income


#1

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


#2

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.


#3

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


#4

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.