What is Considered Income for Spousal Support?

December 7, 2019August 12, 2020
by Angie

If you’re like many people going through a divorce in California, you need to know what is considered income for spousal support. That’s true whether you’re likely to have to pay spousal support (commonly called alimony) or whether you’re likely to receive it.

Usually, the court awards alimony to the lower-earning spouse. It’s a way to level the playing field so that the lower earner has time to get on his or her feet and become completely self-sufficient.

When a judge awards spousal support, he or she must consider the paying spouse’s income.

But what is considered income for spousal support? Here’s what you need to know.

What is Considered Income for Spousal Support?

Judges will only award spousal support when one spouse makes a significant amount more than the other does. The alimony must be fair and reasonable to the lower-earning spouse, but it has to be something that the higher-earning spouse can actually afford. That’s why the courts consider income as a major factor.

Income for spousal support includes all sources of money that a person receives, whether it’s through a paycheck, through stock dividends or through another source. Generally, everything that you’d pay income tax on when it’s time to make a payment to the IRS counts as your income.

What About Imputed Income?

If the person who is supposed to pay spousal support is working a job that pays less than what he or she could earn – especially if the person is doing it purposefully to avoid paying spousal support or child support – the courts can figure out an amount based on a higher figure. That’s known as imputing income for support, and it means that the court will attribute income to a person who hasn’t actually earned it.

Here’s an example: Your ex takes a $20 per hour job as a mall security guard, even though he or she is an established draftsman or engineer who was previously employed in a large firm (and made more than $20 per hour). The court may use the salary from your ex’s previous job to determine how much support he or she should pay. That’s imputed income that your ex could reasonably earn, as shown by his or her prior employment history.

Here’s another example: Your ex has been earning $90,000 per year in a long-term job. However, that job requires a lot of travel. Your ex quits and takes another job making just half of his or her previous salary – and then says that spousal support is unaffordable. The judge in your case will want to know why your ex quit the stable, long-term job, and you’ll have a chance to explain that it was completely voluntary. In a case like that, the judge could impute income, resulting in a spousal support payment comparable to what you’d receive if your ex still had the $900-per-year job.

A Word on Spousal Support AS Income

When someone receives spousal support, he or she must count it as income when filing federal and state tax returns. According to the IRS, alimony needs to be included in a person’s income if the two parties involved meet the following conditions:

The spouses don’t file a joint return with each other
The payment is in cash (including checks or money orders)
The payment is to or for a spouse or a former spouse made under a divorce or separation instrument
The divorce or separation instrument doesn’t designate the payment as not alimony
The spouses aren’t members of the same household when the payment is made (this requirement applies only if the spouses are legally separated under a decree of divorce or of separate maintenance)
There’s no liability to make the payment (in cash or property) after the death of the recipient spouse
The payment isn’t treated as child support or a property settlement

As a side note, if you pay spousal support, the IRS says “Alimony is deductible by the payer spouse.”

Do You Need Legal Advice on What is Considered Income for Spousal Support?

If you need legal advice, such as what is considered income for spousal support, or if you want to find out whether you’ll have to pay – or be entitled to – spousal support, we can help. Call us at (209) 989-4425 or get in touch with us online to schedule your consultation. We’ll help you with every aspect of your divorce, from child custody and child support to property division.

Child Support

California Child Support Law

January 31, 2018January 17, 2019
by Angie

California child support laws are designed to ensure that kids receive equal and adequate financial support from both parents – but how do they work, and how do the courts determine how much money each parent is supposed to contribute?

California Child Support Laws: The Basics

In the state of California, child support is the money a court orders one or both parents to pay each month for expenses related to raising a child (or more than one child).

There’s a specific guideline that shows judges how to determine the amount of child support required, but it’s just that: a guideline. Several factors affect how much child support has to change hands, and nothing is final until a judge signs a child support order.

Parents who receive child support can use it for any expenses that are commonly associated with raising a child, including food, clothes and shelter, as well as medical, school and transportation expenses, entertainment and extracurricular activities.

Who Pays More, Mothers or Fathers?

Because both parents are responsible for providing financial support, the court creates a child support order based on both parents’ incomes and how much time they each spend with the child or children. The courts assume that the parent who is physically with the child is financially responsible during that time (that’s why visitation and child custody – the amount of time each parent spends with the child – plays a role in child support decisions).

There’s nothing in California child support law that says fathers or mothers have to pay more; the guidelines take several factors into account to determine what’s fair for the child.

The California Child Support Formula

The judge will calculate how much each parent is required to pay by looking at both people’s net disposable income. Net disposable income is the money left over after taxes, mandatory retirement contributions and union dues, health premiums, other child support or spousal support, and the costs related to raising kids from another relationship.

The court will look at all sources of income for both parents, including:

Disability and worker’s compensation benefits
Dividends and stocks
Income from rental properties
Inheritances and prize winnings
Interest earned on investments
Self-employment earnings
Social Security income and pensions
Unemployment benefits
Wages, tips, bonuses and commissions

The expenses included when the court determines child support include:

Money for food, clothing and shelter
Health insurance costs
Back payments and interest on back payments

A judge can order a parent to contribute to other expenses, too, such as:

Child care
Tuition
Unpaid medical bills
Travel costs for visitation
Extracurricular activities

What is Parentage?

Parentage is a legal determination of who is responsible for supporting a child – and it’s important to know that a person does not have to be a biological parent to be legally responsible for a child. Parentage can be established in several ways.

How Long Does a Parent Have to Pay Child Support?

Typically, child support lasts until the child reaches the age of majority and stops when the child turns 18 and has finished high school or turns 19 without finishing high school. There are a few exceptions, though, such as when a child becomes incapacitated or disabled – then, the parents have a duty to support the child indefinitely.

Do You Need to Talk to a Lawyer About California Child Support Laws?

We can answer your questions about California child support laws and other matters regarding divorce, and we can refer you to outside help if you and your children need someone to talk to.

Call us at 209-910-9865 or get in touch with a Stockton divorce attorney online to schedule a consultation today. We’ll discuss your case, find out about your circumstances and start formulating a plan that gets you and your children the best possible outcome.

Tag: <span>Income</span>

What is Considered Income for Spousal Support?

What is Considered Income for Spousal Support?

What About Imputed Income?

A Word on Spousal Support AS Income

Do You Need Legal Advice on What is Considered Income for Spousal Support?

California Child Support Law

California Child Support Laws: The Basics

Who Pays More, Mothers or Fathers?

The California Child Support Formula

How Long Does a Parent Have to Pay Child Support?

Do You Need to Talk to a Lawyer About California Child Support Laws?