In Connecticut, both parents are responsible for the financial care of their children throughout their upbringing. Following a divorce or separation, the income of each parent factors into determining child support payments.
Be sure to understand the types of income you must report to ensure the correct calculation of your child support order.
Salaries
One of the most common types of income included in child support determinations is wages and salaries. This includes income from employment, such as regular wages, bonuses, commissions and tips. Any income earned through work is typically considered when calculating child support obligations.
Self-employment
Income from self-employment is also included in child support determinations. This includes income earned from owning or operating a business, freelancing, consulting or any other self-employed work. For calculation purposes, self-employment income is the parent’s gross receipts minus allowable business expenses.
Investments
Income from investments, such as interest, dividends, capital gains and rental income, is another factor considered in child support determinations. This includes income earned from stocks, bonds, mutual funds, real estate properties and other investments. Investment income is typically assessed based on the actual income received by the parent rather than unrealized gains.
Retirement benefits
Retirement benefits, like pensions, annuities, Social Security benefits and other retirement income, is typically included in child support calculations. Even when one parent continues to work, that does not preclude the other parent’s retirement income from being counted.
Disability and workers’ comp
Income from disability benefits, workers’ compensation and other disability-related payments are also usually included in child support determinations. This is true for both long-term and short-term payments.
Because income plays a key role in calculating child support payments, any significant changes for either parent may be grounds for modifying the support order. If you or your spouse experience an increase or decrease in income, it is a smart move to consult with an attorney experienced in support modifications to ensure a fair and equitable adjustment.