Verifying both parties incomes in an Illinois divorce is crucial to determining both maintenance (formerly known as alimony) and child support. Often, it is necessary to request tax returns from the IRS in order to verify a party’s true income. Why Income Must Be Verified In An Illinois Divorce Both parties’ net incomes must be ascertained in an Illinois divorce. “”Net income” includes maintenance not includable in the gross taxable income of the payee for federal income tax purposes under a court order in the pending proceedings or any other proceedings and shall be included in the payee’s net income for purposes of calculating the parent’s child support obligation.” 750 ILCS 5/505(a)(3)(B) Once net income of both parties is determined, maintenance and child support can be calculated. “Maintenance…shall be calculated by taking 33 1/3% of the payor’s net annual income minus 25% of the payee’s net annual income.” 750 ILCS 5/503(b-1)(1)(A) There is a cap on the maintenance calculation. “The amount calculated as maintenance, however, when added to the net income of the payee, shall not result in the payee receiving an amount that is in excess of 40% of the combined net income of the parties.” 750 ILCS 5/503(b-1)(1)(A) Child support calculation in Illinois is more byzantine but is still based on net incomes of the parties. “The court shall compute the basic child support obligation by taking the following steps:(A) determine each parent’s monthly net income;(B) add the parents’ monthly net incomes together to determine the combined monthly net income of the parents;(C) select the corresponding appropriate amount from the schedule of basic child support obligations based on the parties’ combined monthly net income and number of children of the parties; and (D) calculate each parent’s percentage share of the basic child support obligation.” 750 ILCS 5/505(A)(1.5) How Is Income Determined In An Illinois Divorce In an Illinois divorce, a party’s income is determined…by what they say it is. Each party fills out a financial affidavit attesting to their income, assets and debts. There is very little required to verify that self-testified income. “The financial affidavit shall be supported by documentary evidence including, but not limited to, income tax returns, pay stubs, and banking statements.” 750 ILCS 5/501(a)(1) Fake Tax Returns In An Illinois Divorce If a person is self-employed, they control how their income looks on paystubs. They can withdraw cash from their business in lieu of […]
