How self-employment income affects child support

Divorce often carries emotional and financial challenges, especially with kids in the mix. It is important to make sure they are financially stable. Things can get tricky when self-employment income impacts child support duties.

Child support is crucial for a smoother transition

In California, courts consider several factors when determining child support for self-employed parents:

• Gross income: This includes all income sources, not just business profits.
• Business expenses: Courts examine which expenses are necessary for the business.
• Tax returns: These provide a baseline for income verification.
• Bank statements: These help verify income and expenses.
• Business records: These offer insights into the business’s financial health.

Unlike traditional employment, being self-employed usually means having unpredictable earnings and different business costs. This can make calculating child support more complex.

In California, courts utilize a guideline calculator to establish child support amounts. If you are self-employed, the court might need to “add back” certain expenses to accurately assess your income.

Courts may scrutinize the income of self-employed parents more closely than that of W-2 employees. In cases where income fluctuates significantly, the court may average income over several years to determine a fair support amount.

Trying to hide income or assets to avoid paying child support is against the law. Courts treat this seriously and may punish parents who engage in such practices.

Seeking legal help can be advantageous

Divorce is a life-changing event. Knowing your rights and responsibilities as a parent can make the process less daunting. It is best to work with a skilled attorney for personalized advice and the protection of what matters most.