Income from other sources, with some exclusions, should be factored into the annual gross income computation. There are many employee perks that the lay person is unaware of that are calculated into that parent’s gross income.

A company car provided as an employee benefit reduces that parent’s living expenses and thus is properly included as taxable income at its fair rental value.

If an employee receives free housing, at the courts discretion, the reasonable value of a parent’s rent free housing received as an employment benefit is properly included as income because the benefit reduces living expenses and thus increases money available for child support.

The California Code also includes overtime pay under the general definition of income. If overtime is predictable based on past overtime earnings, the overtime will be calculated as income unless the court determines that the overtime is not likely to continue in the future.

If a parent makes an agreement with their employer for voluntary debt repayment by effectively diverting funds from their income, these funds may be added back to their annual gross income to calculation.

Commonly if a parent owns a business and has control over their income they sometimes structure income and payment of personal expenses through the business to effectively reduce their income in an attempt to minimum child support. In this case, a court may properly consider the business paid personal expenses in determining the parent’s gross income for the child support calculation.

Therefore, there are many factors that come into play when determining what income can be used to calculate child support. It is important to retain a knowledgeable Tustin child support attorney to assist you in adequately representing your interests.

Wallin & Klarich has more than 30 years of experience in family law. Our attorneys know from long experience what works in a divorce case, and are prepared to fight to get you the best possible outcome. With 16 attorneys in 33 offices throughout Southern California, we can be there when you need us — wherever you are. If you’re thinking of hiring an attorney for a mediated divorce, call us today at 1-888-749-7428 for a consultation, or fill out the online case evaluation form to the right.