Finances are fundamental to an Indiana divorce. They impact property division, spousal maintenance, child support and more. While all aspects are considered when the court makes its determination, the welfare of the children is always top priority.
The courts scrutinize both parents’ income to decide how much child support must be paid. They use state guidelines, but these do not cover every person’s circumstances. For one thing, it can complicate matters when parents don’t have steady income.
For people who are self-employed, receive income through rent, or royalties, there are specific methods to come to a reasonable assessment about their finances. People in this situation should be aware of how this works.
Calculating child support
Child support hinges on factors including the child’s needs and the parents’ income, unusual situations require a closer look at the income and outlays. The courts look at the parents’ weekly gross income. The court then subtracts common and reasonable expenses related to how the parents earn their livings.
The court is flexible with these circumstances and how it gauges income. For example, if the person who has rental properties must make purchases for maintenance and repairs, then that will generally be allowed. If there is depreciation on the property, the court might not allow it.
Income tax can be used when calculating weekly gross income, but the process can get complicated. For example, in some cases, a court might decide that one parent is not earning as much money as they reasonably could. This could result in the court imputing the person’s income under the premise that they could be earning more.
Getting help is important
In a family law case, child support calculations will be made based on many issues. If either or both parents earn income based on royalties, rental properties, and self-employment, they should know how the support order will be determined. This is crucial for the child’s best interests and so the parents can be prepared for their case. Having professional assistance that is experienced in these unique circumstances is useful from the start.
