DISCOVERING INCOME IN DIVORCE: CHILD SUPPORT

Written by Lindsay C. Ronilo
Ronilo Law, LLC


The content is not intended to be a substitute for professional legal advice. Neither Lindsay Ronilo nor Ronilo Law, LLC are establishing any attorney-client relationship with this informational article. Lindsay Ronilo and Women’s Wealth Boutique are not affiliated entities. If you have questions, you should consult with a lawyer experienced in family and domestic law.

Discovering Income in Divorce:

Child Support

Child Support in the state of Alabama is calculated based on a formula where the parents’ combined gross incomes provide the main foundation of the calculations. “Gross income” is defined as “income from any source, and includes, but is not limited to, salaries, wages, commissions, bonuses, dividends, severance pay, pensions, interest, trust income, annuities, capital gains, Social Security benefits, workers' compensation benefits, unemployment-insurance benefits, disability insurance benefits, gifts, prizes, and preexisting periodic alimony”. This means that gross income does not include many government assistance programs such as TANF (Temporary Assistance for Needy Families), Supplemental Security Income (SSI), or food stamps.

When going through a divorce it’s important to think through all of these categories of income and decide what applies to your and your spouses finances and what does not. This can help an attorney narrow down sources of income to explore, but can also help an attorney search for income sources that you may be concerned about. With the advent and explosion of the gig-economy it can sometimes be helpful to look past regular W-2 wages and more traditional income sources. As you work through the divorce process an attorney will evaluate all sources of income in order to properly calculate child support.

In addition to income information, an attorney will gather information about both parents’ expenditures related to medical insurance and work-related childcare – when those circumstances apply. Work related childcare must be childcare that is provided to one or both parents due solely to work; it cannot be childcare provided to a parent while in school or for other reasons. The cost of insurance premiums paid by either or both parents are also included in the child support calculator and these can include major medical insurance as well as dental and vision costs.

Additionally, Alabama provides two separate calculations for child support based upon different custodial arrangements between the parents. In a situation where parents share joint (50/50) custody of the children involved, child support would be different than in a situation where the children live primarily with one parent. Each child support calculation and arrangement is as unique as the people involved in each divorce case. It’s important to have a knowledgeable and experienced attorney help you each step of the way so that you can approach your divorce case with confidence.

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Disclosures

Money Matters Wealth Solutions is a dba of The Wealth Boutique, a registered investment advisor with the Securities and Exchange Commission. The Wealth Boutique and each of the DBAs are not under common ownership but owned and operated separately. All financial planning and advisory services are provided by The Wealth Boutique. All investments involve risk and unless otherwise stated, are not guaranteed. Be sure to consult with a tax professional before implementing any investment strategy.| Full Disclosure | CRS

Estate Planning Services are offered by Estate Gurus, an unaffiliated third party. The Wealth Boutique may engage third-party service providers to assist with the tax and estate planning portion of the services provided to clients. In addition, The Wealth Boutique may use third-party software to analyze a client’s information to help with the provision of estate planning services. Women's Wealth Boutique is not a law firm, nor are any employees acting in the capacity of an attorney or providing legal advice as Women’s Wealth Boutique is not a law firm and therefore not permitted to practice law. Fees for third-party estate planning services are in addition to the financial planning fees charged by The Wealth Boutique and are collected directly by that third party based on the client’s direct relationship with the third-party estate planning vendor. Donna Cates is a licensed insurance agent. From time to time, she will offer clients advice or products from those activities. Clients should be aware that these services pay a commission and involve a conflict of interest, as commissionable products can conflict with the fiduciary duties of a registered investment adviser. This conflict of interest is addressed by supervision of insurance recommendations and by not recommending insurance products unless there is a documented insurance need. These products are separate from the investment advisory services provided by The Women’s Wealth Advisor, DBA Money Matters Wealth Solutions

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