When you are a parent who has to pay child support, you probably have a lot of questions about how your obligation is calculated. How much do you have to pay and why?
I realize that this can be one of the most stressful parts of a divorce. Not only are you grappling with the end of a very important relationship, but now you need to understand the financial impact on your family.
While understanding net income can be very complicated, I have been through this exercise thousands of times and make it my duty to explain it in terms that my clients understand. I know that knowledge and comprehension helps take some of the stress out of the situation.
New Illinois Child Support Laws
Illinois updated its child support law in 2017. While that may seem like a long time ago, some families are still working to understand what that means for them.
Illinois now uses the “Income Shares” model, which takes into account both parents’ income. The law directs the Department of Healthcare and Family Services to adopt rules establishing child support guidelines and worksheets that reflect a percentage of the parent’s combined net incomes.
What this means is if you are the parent with the higher income, chances are you will have a higher child support responsibility.
Illinois’ Definition of Net Income
The law defines your net income as “the total of all income from all sources,” minus specific deductions, including:
- Federal and state income tax
- Social Security payments
- Mandatory retirement contributions
- Prior child support requirements
- Union dues
- Prior spousal maintenance
- Health insurance premiums
The law calculates all of the money you receive as income, even if you are paid from a number of different sources. Common types of income include:
- Wages from full- and part-time jobs: It does not matter if you work 2 days a week or 7 days a week, any income from a place where you are employed counts toward your income. If you are in the food or another service industry, your tips count as income as well.
- Workers’ compensation benefits: If you currently receive weekly or monthly workers’ compensation payments, this money counts toward your net income.
- Independent contractor payments: If you work as an independent contractor, you are aware your tax obligations are different than if you were an employee. In general, your freelancing wages count toward net income, but some of your tax obligations are deductions from net income under the law.
Contact Chicago Child Support Lawyer Michael C. Craven
If you have questions about your child support obligation, call me right away. It can be difficult to calculate your net income. You deserve to fully understand your financial obligation. I have years of experience working with parents like you, who want to do what is best for their children while maintaining a healthy financial situation.
Call (312) 621-5234 to schedule a consultation.
