What Income Counts When Calculating Child Support?
When parents in Austin think about child support, many assume it is based only on a parent’s paycheck. In reality, however, Texas child support law requires courts to consider a variety of financial resources when calculating child support. Understanding what counts as “net resources” is an important part of understanding how child support is determined in Austin.
To help Austin parents better understand Texas child support laws, here we discuss what types of income and resources may be included when calculating child support in Austin and why it is important to work with an experienced Austin family law attorney.
Texas Looks at More Than Just Salary When Calculating Child Support
In Austin, under Texas law, child support is generally based on a parent’s net resources rather than simply their hourly wage or annual salary.
In addition to wages and salary, Texas child support law provides that courts may consider many other types of income when determining child support. Depending on the circumstances, this may include commissions, overtime pay, tips, bonuses, self-employment income, interest, dividends, royalty income, net rental income, retirement benefits, pensions, trust income, annuities, certain Social Security benefits, certain Veterans Affairs disability benefits, unemployment benefits, disability benefits, workers’ compensation benefits, spousal maintenance, alimony, capital gains, gifts, prizes, and other income that is actually being received.
Because every Austin child support case is unique, determining what income should be included often requires a careful review of a parent’s financial circumstances.
Some Financial Resources Are Not Included
Texas child support law also identifies certain resources that typically are not included when calculating child support in Austin. These may include the return of principal or capital, accounts receivable, benefits received through certain federal public assistance programs, and payments received for foster care of a child.
Understanding the difference between income that is included and income that is excluded can play an important role in ensuring that child support is calculated correctly.
How Are Net Resources Calculated?
After determining an Austin parent’s resources, Texas law permits certain deductions before calculating child support. Depending on the circumstances, these deductions may include Social Security taxes, applicable federal and state income taxes, union dues, certain health or dental insurance costs for the child, and, in some cases, required retirement plan contributions.
Because child support calculations can become more complicated when multiple sources of income or allowable deductions are involved, it is important to seek experienced legal guidance.
An Austin Family Law Attorney Can Help
Every Austin child support case is different. Self-employment income, bonuses, investment income, retirement benefits, and other financial issues can all affect how child support is calculated under Texas law.
Whether you are seeking to establish child support or have questions about how your income may be treated, experienced Austin family law attorneys can review your financial circumstances, explain how Texas child support law applies, and help protect your rights throughout the process.
Getting Legal Help with Your Child Support Case in Austin
If you have questions about child support or any other family law matter, the experienced Austin family law attorneys at The Law Office of Oprea & Weber are here to help. Every Austin family’s financial circumstances are unique, and The Law Office of Oprea & Weber provides personalized legal guidance to help Austin parents understand their rights and navigate the child support process with confidence.
Contact The Law Office of Oprea & Weber today to speak with experienced Austin family law attorneys about your child support matter now.
Source:
texas.public.law/statutes/tex._fam._code_section_154.062