Income Quirks For Child Support

Generally, the list of what counts as income for child support purposes is very broad, including

(among other items) rental income, capital gains, unemployment benefits, monetary prizes (i.e., lottery winnings), interest, bonuses, dividends, and commissions. However, there are a few categories of income that Colorado does not include in the calculation. Here are a few of the most common scenarios that come up in my practice.

OVERTIME

Overtime is not included in income for child support purposes. The only exception is if the employer requires overtime as part of the position.

However, although it is not considered income, overtime is a factor that the court can consider when deviating from the child support guidelines. If a parent consistently works overtime, the Court can change the amount of child support to be paid.

IMPUTING INCOME

Some parents quit their job or take lower-paying employment in an effort to avoid child support. For example, an attorney who decides to change careers and become a seasonal farm worker. If a parent chooses to be unemployed or underemployed, the Court can “impute” income to that parent. This means that the Court determines what the parent is capable of making, and uses that income for purposes of calculating child support.

The Court can use any reliable source to establish the typical hours that are available in any given field. This can include verified statements from witnesses who work in the field, the party’s work history, or United States Department of Labor statistics.

UPDATE: In 2023, the statute about imputing income was changed. If the court does not have information about how many hours are typically available in a given field, the court must use 32 hours per week for 50 weeks per year to impute income.

SECOND JOB

If a parent has a full-time job, income from a side job is not included in income when calculating child support. However, just like overtime, this is a factor that the Court can consider when determining the amount of child support.

NEW SPOUSE

A new spouse's income is not included for child support purposes. However, depending on whether you file joint or separate tax returns, your new spouse's income may have to be disclosed to your ex-spouse.

Determining income for child support is not always as easy as pulling a figure off of a W2. If you have questions about whether you are paying or receiving the correct amount of child support, call Katelyn to discuss.