Per Illinois law, unmarried and divorced parents are still expected to contribute to their child’s financial needs. The parent with less parenting time usually fulfills his or her end of the obligation through child support payments. Many parents are confused about how child support is calculated. They know that child support is based on the parents’ respective net incomes; however, they are unsure of what constitutes “net income.” Furthermore, special circumstances can make the process of calculating child support even more complex.
What Types of Income Are Used to Determine Child Support?
Illinois has adopted the Income Shares Model to calculate child support. This calculation method uses both parents’ net incomes to determine a child support payment amount.
Net income includes any source of income that increases wealth and may include:
- Hourly wages
- Salary
- Bonuses
- Commissions
- Deferred compensation payments
- Job “perks” such as a company car or housing allowance
- Self-employment income
- Social Security disability benefits
- Business profits
- Proceeds from investments
- Retirement plan distributions
- Trust distributions
- Severance pay
- Spousal support received from current relationship
What is Excluded from Net Income During Child Support Calculations?
Some income is excluded from a parent’s net income during child support calculations. Net income excludes:
- Income that was used to pay income taxes and Social Security
- Income from certain public assistance programs
- Child support obligations from a previous relationship
- Spousal support obligations from a previous relationship
- Health insurance premiums
- Mandatory retirement contributions
What if a Parent Lies About His or Her Income?
Unfortunately, some parents try to influence child support payments by failing to report all of their income. If either parent provides an inaccurate accounting of income, the child support payment amount will also be incorrect. Furthermore, lying on your financial disclosure may lead to charges for contempt of court. If you suspect that the other parent is lying about his or her income in an effort to sway child support, speak to a family law attorney for help.
Contact a Wheaton Child Support Lawyer
If you need help with a child support concern or you have other family law needs, contact the skilled DuPage County family law attorneys at MKFM Law. Call our office at 630-665-7300 for a confidential consultation.
Source:
https://www.ilga.gov/legislation/ilcs/documents/075000050k505.htm