Establishing Income for Child Support Purposes
I am often asked whether a person’s income for the purpose of establishing child support is limited to what is reported on their income tax return. As you will see below, the controlling statute makes it clear that all sources of income, whether taxable or not, will be considered by the Court when establishing income for the purpose of establishing child support.
In every divorce, dissolution and child support case, the Court is required to establish a child support obligation for each parent. To do so, each parent’s gross income must be determined. For child support purposes, Ohio law defines gross income very broadly:
“the total of all earned and unearned income from all sources during a calendar year, whether or not the income is taxable, and includes income from salaries, wages, overtime pay, and bonuses . . .; commissions; royalties; tips; rents; dividends; severance pay; pensions; interest; trust income; annuities; social security benefits, including retirement, disability, and survivor benefits that are not means-tested; workers' compensation benefits; unemployment insurance benefits; disability insurance benefits . . . spousal support actually received; and all other sources of income . . . . self-generated income; and potential cash flow from any source.”
What's more, it can be tricky to uncover all income earned by a parent due to the manner in which some people are compensated. While establishing income for a parent who earns a fixed salary is straightforward, what about a parent who uses a company car, relies heavily on commissions, is self-employed or operates their own business? Determining income for high wage earners and self-employed people can be difficult based on a number of factors, including the method of record keeping used by the business.
What is a Child Support Deviation
Using each parents' gross income, Ohio utilizes a statutory child support schedule and child support calculation worksheets to determine a presumptive child support amount. Then, the Court has discretion to deviate (upward or downward) from the presumptive child support calculation if it is determined that the presumptive child support calculation is unjust, inappropriate or not in the best interests of the minor children.
Ohio law states that a Court may consider any of the following factors in determining whether to grant a deviation:
Special and unusual needs of the child(ren), including needs arising from the physical or psychological condition of the child(ren).
Other court ordered payments.
Extended parenting time or extraordinary costs associated with parenting time including extraordinary travel expenses when exchanging the child(ren).
Financial resources and the earning ability of the child(ren).
Relative financial resources, including the disparity in income between parties or households, other assets, and the needs of each parent.
Obligee’s income, if the obligee’s annual income is equal to or less than one hundred percent (100%) of the federal poverty level.
Benefits either parent receives from remarriage or sharing living expenses with another person.
Amount of federal, state, and local taxes actually paid or estimated to be paid by a parent or both parents.
Significant in-kind contributions from a parent, including, but not limited to, direct payment for lessons, sports equipment, schooling, or clothing.
Extraordinary work-related expenses incurred by either parent.
Standard of living and circumstances of each parent and the standard of living the child would have enjoyed had the marriage continued or had the parents been married.
Educational opportunities that would have been available to the child(ren) had the circumstances requiring a child support order not arisen.
The responsibility of each parent for the support of others, including support of (a) child(ren) with disabilities who are not subject to the support order.
Post-secondary educational expenses paid for by a parent for the parent’s own child(ren), regardless of whether the child(ren) are emancipated.
Costs incurred or reasonably anticipated to be incurred by the parents in compliance with court-ordered reunification efforts in child abuse, neglect, or dependency cases.
Extraordinary childcare costs required for the child(ren) that exceed the maximum state-wide average cost estimate provided in Ohio Revised Code §3119.05(O)(1)(d) including extraordinary costs associated with caring for a child(ren) with specified physical, psychological, or education needs.
Other relevant factors
Contact an Experienced Family Law Attorney
If a child support deviation is being requested in your divorce or dissolution, choose a family law attorney who understands the child support deviation statute and has extensive experience in the local court where your case will be decided. Christopher M. Alexander will advise you how the court traditionally analyzes deviation factors in your divorce, dissolution and child support case. When you need a skilled and experienced family law lawyer, contact Christopher M. Alexander, Esq. at (513) 228 – 1100 or chris@alexander-legal.com.