A Monterey couple who is in the process of getting a divorce has many different things to work out. Besides property division, child custody and child support are some of the more contentious issues. A parent may wonder what qualifies for income when the court decides how much child support is awarded.
The California Family Code dictates what income qualifies when calculating child support. This income includes:
- Salaries and wages
- Bonuses and commissions
- Rental property income
- Business income
- Income from a trust
- Benefits from unemployment, workers’ compensation, and disability
Income doesn’t include:
- Student loans
- Principle of life insurance death benefits
- Speculating future income
- Personal injury proceeds unless earmarked for lost income
- Gifts of nonmonetary nature
Parents usually agree that their children should not be hurt by a divorce. They agree that children should not be left without financial support just because their parents are getting a divorce. Child support is intended to keep kids from experiencing a drop in their standard of living because of the divorce. Creating a consistent and fair child support plan is important in ensuring a child’s life is minimally disrupted.
A person who is going through a California divorce may want to speak with a legal professional who is skilled in family law. An attorney can help their client understand how child support is awarded and can help them work out a fair agreement. There are many sources of income that are included in determining child support payments. Knowing how child support is calculated is important information for parents to consider.