07 Nov Net Income: How is it Calculated for Child Support Purposes?
Calculate Net Income for Child Support Purposes
In Florida family law cases that involve children, Child support is often an issue. Our clients (naturally) need to know how much the other parent must pay for their current/past monthly child support obligation and/or how much they will need to pay going forward.
There are many factors that are “in play” when determining which spouse must be the payor (such as the number of overnights each parent has with the child), but arguably, the most important factor is the amount of income that each spouse makes. In particular, the amount of “net income” that the parent generates. In order to calculate net income for child support purposes, we initially look at the parents’ combined net income and derive the amount estimated to have been allocated to the child – as if the parents and children were living in an intact household. (Florida Statute §61.29)
How to Determine Net Income under Florida’s Child Support Guidelines
Net income, for purposes of calculating child support, is obtained by taking the parents’ gross income and subtracting “allowable deductions”. Under Florida Statute §61.30(3), the allowable deductions include:
- Federal, state, and local income tax deductions, adjusted for actual filing status and allowable dependents and income tax liabilities.
- Federal insurance contributions or self-employment tax.
- Mandatory union dues.
- Mandatory retirement payments.
- Health insurance payments, excluding payments for coverage of the minor child.
- Court-ordered support for other children which is actually paid.
- Spousal support paid pursuant to a court order from a previous marriage or the marriage before the court.
If you have questions regarding the calculation of net income for child support purposes or have any questions regarding paying child support, feel free to give us a call.
We provide free initial phone consultations.