Determining Income for Child-Support Obligations

Child-support obligations are one of the most critical debated areas in any divorce. Ideal situations unfortunately are not the norm, and in Arizona, the state follows what’s known as the Income Shares Model. As the name suggests, the model considers the income of both parents.

In this two-part series, we will first review how to determine income, and then follow with determining the combined child support obligation in Part II. Child support income is income from any source (salaries, commissions, dividends, bonuses, military pay, severance pay, capital gains, disability benefits, recurring gifts, etc) before withholdings or deductions are applied. If a parent experiences fluctuating or seasonal income in a given year, an annualized amount is calculated to arrive at an average monthly support income amount.

For example, Jason is a third-grade teacher paid over 9 months a year. From September to May Jason earns $8,000 per month ($76,000 annually). Despite not earning anything for the months of June, July, and August, to arrive at Jason’s average monthly income you would simply divide $76,000 by 12 (months) = $6,333.

What is not included?

The most common question surrounding the determination of child support income is not what it includes, but what it doesn’t. The sums a parent receives via child support, for example, are not included. Nor are benefits from public assistance programs such as Supplemental Security Income (SSI), Temporary Assistance to Needy Families (TANF), or Nutrition Assistance and General Assistance, among others.

Regarding overtime work, the court would not normally include this as part of the child support income formulation. Yet, this is case specific, especially if the parent had historically earned a higher amount for an extended period of time (overtime included).

Can child support income be attributed if it’s not actually earned?

The short answer - yes. The Arizona Revised Statutes Subsection 25-320(N) clarifies that the court may presume if a parent is capable of full-time employment. Should this occur, the typical attribute is a parent working for the minimum wage at 40 hours per week. This is a tricky finding, so when it does occur the court spends considerable time reviewing parents’ assets, earnings history, literacy, age, criminal records (if applicable), employment barriers, and a host of other variables. Many times the context surrounding the local job market, unemployment rate, and the prevailing earnings in the community are also taken into account.

In Part II we’ll discuss the determination of the combined child support obligation.