Understanding Child Support in Divorce Settlements
1. Divorce and Child Support
- Divorce is challenging, especially with children involved.
- Child support is a contentious issue, often leading to disputes.
- Determining the percentage of income for child support can be confusing.
2. Income Considered as Child Support
- Broad Definition of Income:
- Work earnings
- Pensions
- Dividends
- Rental income
- Trust funds
- Business Owners:
- Income is gross revenue minus business expenses.
- Courts may include benefits reducing living expenses.
- Financial Gifts:
- Recent laws classify parental financial gifts as income.
- California Family Code Section 4050:
- Specifies how child support is calculated.
- Factors: Both parents’ incomes, child’s time with each parent, applicable tax reductions.
- Use the California Guideline Child Support Calculator for estimates.
3. Income Not Considered as Child Support
- Non-eligible Income Types:
- Life insurance benefits
- Speculative income
- Non-liquidatable stock options
- Personal injury settlements
- Non-monetary Gifts:
- Cars
- Household items
- State Laws Variability:
- Income eligibility can vary by state and court decisions.
- Each situation is subject to change based on court rulings.
Need Help?
- Child Support Attorney: Essential for navigating complex child support issues.
- Virtual Divorce Mediation: Convenient for resolving disputes without court appearances.
- California Divorce Mediation: Specialized services tailored for California residents.
Understanding the intricacies of child support is crucial in ensuring fair settlements. Consulting with a child support attorney and utilizing virtual divorce mediation can significantly ease the process. For California residents, specific services for California divorce mediation can provide tailored support.
Gerald A. Maggio is a trained Orange County divorce mediator who has amicably resolved cases many cases out of court, as well as an experienced divorce and family law attorney. Mr. Maggio founded California Divorce Mediators in 2012 with the belief that although “not every marriage can be saved, every family can” and a mission to save families from the financial and emotional distress associated with traditional divorce litigation. California Divorce Mediators is located in Irvine, California, and serves the Orange County area and other counties in California offering divorce mediation, child custody mediation and mediation of other family law matters.
