What is income for purposes of calculating maintenance?

Previously, we discussed what counts as income for purposes of child support. In this blog, we will discuss what counts as income for purposes of calculation of maintenance (alimony).

The determination of income for purposes of calculating spousal maintenance is very similar to the determination of income for purposes of child support. There are some differences, however. The statute defines income as follows:

·      Salaries

·      Wages (including tips)

·      Commissions

·      Payments received as an independent contractor

·      Bonuses

·      Dividends

·      Severance pay

·      Pensions and retirement benefits

·      Royalties

·      Rents

·      Interest (even interest that is merely re-invested)

·      Trust income

·      Annuities

·      Capital gains

·      Any money withdrawn by a self-employed invidiual for personal use that are deducted as a business expense (for example, payment of a cell phone bill using business funds, used for both business and personal use)

·      Social security benefits (which also includes benefits received by a parent for disability/death)

·      Worker’s compensation payments

·      Unemployment payments

·      Disability insurance payments

·      Monetary gifts

·      Monetary prizes (such as gambling winnings)

·      Income from partnerships

·      Expense reimbursements or in-kind payments received in course of employment

·      Overtime pay (if it is required as a condition of employment)

·      Alimony received from another prior payor

Most of the statute pertaining to these issues is much the same for spousal maintenance as it is for child support, so that blog post is also applicable to this one. The differences, though, are important.

First, the determination of income for purposes of spousal maintenance is not even relevant if a court determines that a requesting party does not need maintenance to meet their needs, or if they are being allocated sufficient property from the marital estate to meet their needs. As such, the court may not even reach this inquiry. Child support calculations do not consider these factors.

Second, a court is much more likely to include or consider a party’s receipt of overtime when determining spousal maintenance. While the statute still retains the statement that overtime is only included if it is mandatory for the employment, a court is likely to more critically assess a party’s receipt of overtime when viewing it for purposes of maintenance.

The other major difference between spousal support and child support is that the child support guidelines are a rebuttal presumption, meaning that the Court must follow the guidelines unless there is good cause not to do so whereas the maintenance calculations are merely based upon guidelines and are not required to be followed by the Court. Thus, the court has far more flexibility when it comes to these issues. To discuss your case-specific details, contact our office for your free consultation today!