Which Income Sources Are Reviewed When It Comes to Support Payments?
Whether the issue is child support or spousal support (alimony), courts carefully review the income of each party to arrive at a fair decision. While some income sources are easy to identify, others may be less obvious.
The reality is that for the income analysis process to be equitable, both spouses’ financial situations must be thoroughly evaluated. Talk to a Somerset County family lawyer about your situation, including assets, debts, earning potential, and the possibility of hidden income streams.
Obvious and Hidden Sources of Income
The most straightforward income sources typically form the foundation of support calculations. This includes wages, bonuses, self-employment earnings, and investment income. These sources are relatively easy to document with pay stubs, tax returns, and financial statements.
While the obvious sources set the baseline, other income streams and financial factors can have a major impact on a support determination. These include:
- Deferred compensation. Stock options, restricted stock units, and retirement benefits may not be immediately accessible, but they still hold value and can affect future financial stability.
- Side jobs and freelance work. Gig-based projects, consulting work, or app-based driving and delivery services can supplement income, and these must be disclosed.
- Business perks. Company-paid expenses (such as housing allowances, car stipends, or travel benefits) may be considered part of a person’s compensation package.
- Hidden assets. In some cases, one spouse may attempt to conceal income through unreported cash payments, underreported business profits, or transferring assets to friends or family. A thorough review of financial records can help uncover these practices.
- Earning capacity. Courts may also consider what a spouse could be earning, not just what they currently earn. If someone is voluntarily unemployed or underemployed, their potential earning capacity may be used to calculate support obligations.
Support payments can significantly affect both spouses’ financial futures. Overlooking a source of income can lead to an unfair support order. This can either leave one spouse struggling or impose an excessive burden on the other. That’s why it is essential to look beyond surface-level income and conduct a complete financial review.
A Clear and Accurate Financial Picture
Seasoned legal professionals can help ensure that all sources of income are properly identified and documented. This may involve reviewing tax records, business ledgers, and financial disclosures, as well as working with forensic accountants when hidden income is suspected. With a complete financial picture, accessing a fair determination of support obligations is possible.
Determining support payments is not just about looking at a paycheck. From investments to hidden assets, many financial factors can influence the outcome. If you are going through a separation or divorce, connecting with a Somerset County family lawyer is the best way to protect your financial interests and ensure that support obligations are fair.
Do you have concerns about how forthcoming your spouse is? Talk to the legal team at the Law Offices of Kisha M. Hebbon, LLC if you believe your spouse is hiding assets in New Brunswick, North Brunswick, Piscataway, Edison, Somerset County, or Middlesex County. Contact us to schedule a confidential consultation.
