Are Gifts and Loans Considered Income in Child Support Cases?

Illinois Child SupportIllinois has specific guidelines when it comes to determining child support obligations after divorce proceedings. According to the guidelines, the award is calculated according to the net income of the non-custodial parent. A small percentage of that income is allocated to child support, according to the number of children he/she is responsible for.

Unless the court determines the guidelines are unsuitable for a case as per the best interest of the children involved, it must stick to those guidelines. Failure to fulfill child support obligations can have serious consequences.

Gifts and Loans are Considered ‘Net Income’

According to the Illinois Supreme Court, gifts and loans should be considered as net income when it comes to determining child support obligations. This issue was addressed clearly in a case in which the court ruled that since loans and gifts are nonrecurring, these should not be deducted from the net income of the parent when it comes to calculating child support.

Since these sources of income are non-reliable at best, whether they will reoccur in the future or not was a non-issue with the court. Parents lose their jobs all the time and can also get demoted or fail in their business venture, after all. Irrespective of the source of the gifts or loans, there is no guarantee that they will reoccur.

However, the court did determine that loans may not be included in a parent’s net income in some cases. Mortgage loan proceedings were also considered to be non-includible in later cases when it came to determining child support.

Loans are treated in name only as income in some cases and the same principle may also be used to determine spousal support. In other words, the term ‘income’ is not clearly defined in state law since it includes any value benefit that the person receiving the support can get to enhance their wealth.

Navigating through divorce and separation can be a highly emotional and devastating experience for any family. It can result in several legal challenges that you may not be equipped to handle. If you are going through a divorce or need advice on spousal and child maintenance, get in touch with our attorneys at the Law Office of Fedor Kozlov today in Schaumburg, IL. We can help you resolve conflicts and ensure you have a solid foundation to start your post-divorce life.


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