Child support is a crucial financial responsibility that parents must fulfill to ensure the well-being of their children. In New Jersey, as in many other states, child support is determined based on various factors, including the income of both parents. “Income” includes more than just wages. If you are seeking child support, or if you are the one who will pay child support, it is essential that you understand the sources of income that the court will consider in calculating child support.
In New Jersey, child support obligations are primarily calculated based on the "Income Shares Model," which considers the combined income of both parents. This model aims to ensure that children receive the same proportion of parental income after a separation or divorce as they would have received if the family had remained intact. Let's delve into the key sources of income that are typically included in child support calculations in New Jersey:
1. Wages and Salary: The most common source of income considered for child support calculations is the wages and salary earned by each parent. This includes gross income from employment, bonuses, tips, overtime pay, and commissions. Parents must provide accurate information about their earnings.
2. Self-Employment Income: For parents who are self-employed or own a business, their income from self-employment is also factored into child support calculations. This includes profits from the operation of a business, professional practice, or freelance work. Determining self-employment income can sometimes be complex, as it may involve assessing business expenses and deductions.
3. Investment Income: Income from investments, such as dividends, interest, capital gains, and rental income, is another source that may be considered for child support purposes. Parents are typically required to disclose their investment income as part of the financial disclosure process during child support proceedings.
4. Retirement Benefits: Retirement benefits, including pensions, 401(k) distributions, and Social Security benefits, may also be included in the calculation of child support in New Jersey. These benefits are considered part of the overall income available to a parent for the support of their children.
5. Unemployment Benefits: In cases where a parent is receiving unemployment benefits, such income may be factored into child support calculations. It is important for parents to report any changes in their employment status or income to the relevant authorities to ensure that child support obligations are adjusted accordingly.
6. Income from Second Jobs or Side Businesses: If a parent has additional sources of income from second jobs, side businesses, or freelance work, such income may also be considered for child support calculations. It is crucial for parents to provide comprehensive information about all sources of income to facilitate an accurate determination of child support obligations.
7. Income from Rental Properties or Royalties: Income derived from rental properties, royalties, or other sources of passive income may be factored into child support calculations in New Jersey. Parents should be prepared to disclose all relevant sources of income to ensure a fair assessment of their child support obligations.
Courts require submission of documents to support income; including recent paystubs, and tax returns from multiple years. Courts will also review W2’s, 1099’s, and other supporting tax forms to substantiate and confirm income information.
In conclusion, understanding the various sources of income that are considered for child support calculations in New Jersey is essential for parents navigating the child support system. With accurate and comprehensive information about their income, parents can be confident that the child support calculation is fair and in the best interest of their children. Parents who have questions or concerns about child support calculations should consult an experienced family law attorney.
To learn more about your rights and obligations, call the office to schedule a consultation.
