Understanding Child Support and Income in North Carolina
When determining child support in North Carolina, income plays a critical role in calculating the financial responsibility of each parent. The state follows guidelines designed to ensure that children receive adequate support while maintaining fairness to both parents. Here’s a breakdown of how income is evaluated for child support purposes in North Carolina.
Defining Income
For child support calculations, North Carolina considers both gross income and the potential income of each parent. Gross income includes earnings from all sources, such as:
- Salaries and wages
- Bonuses, commissions, and tips
- Self-employment income
- Unemployment and disability benefits
- Pension and retirement payments
- Alimony received from other relationships
- Investment income (e.g., dividends, interest, rental income)
Non-recurring income, such as one-time bonuses or gifts, may also be considered, depending on the circumstances. Otherwise, bonuses and commissions that recur but may vary are typically averaged over a period of time. If you win the lottery, that will be considered income to you.
Imputed Income
If a parent is underemployed or unemployed without a valid reason, the court may impute income. This means that the court assigns an income level based on the parent’s earning potential, work history, education, and job opportunities in the local area. This is why it never works to quit a job or deliberately avoid employment hoping that it will affect the amount of child support that you pay or receive.
Adjustments to Income
Certain deductions child-related payments are not deducted from gross income, but are considered when applying the North Carolina Child Support Guidelines. These include:
- Pre-existing child support obligations for other children
- Health insurance premiums directly benefiting the child
- In some cases, extraordinary expenses which may be tuition, special needs, and even extra-curricular activities.
Combined Income and Support Guidelines
North Carolina uses the “Income Shares Model,” which combines the incomes of both parents to determine the total child support obligation. This amount is then divided proportionally based on each parent’s share of the combined income in addtion to the custodial period that each parent has with the child(ren).
Special Circumstances
The court can deviate from the standard guidelines if strict application would be unjust or inappropriate. For example, high-income parents or families with extraordinary expenses (e.g., medical costs or educational needs) may require adjustments to the standard calculations.
Key Takeaways
Understanding what constitutes income is essential when navigating child support cases in North Carolina. Parents must provide accurate financial information to ensure a fair outcome that prioritizes the child’s well-being. Consulting with an experienced family law attorney can help parents address complex income scenarios and achieve equitable child support arrangements.