When Determining Child Support, Are Gifts and Loans Considered Income?
Illinois’s child supports laws are strict when it comes to determining net income because courts base it on ‘all income from all sources.’ However, if you are a non-custodial parent and want to give your child a present or take care of student loans for them, how does this affect child support?
Are Gifts and Loans Considered Income?
In most situations, gifts are not considered income for the parent who receives them, unless they are provided on a regular basis by the non-custodial parent. Even though the law controls how monetary gifts are taken care of, the final verdict the judge gives is usually based on their regularity and the duration. This includes whether they were part of the income during the marriage, whether the sender can keep providing it, and if it is generated from an investment.
If the gift is deemed an income by the court, it is usually added to child support payments. In this case, you can provide evidence that the payment is irregular and that you cannot guarantee regularity if there is any. In case you have to pay more for child support due to said gifts and cannot generate enough money to cover, the court may modify its order, according to your income change, once you make the request. However, your claim will be investigated to verify balances as well as your employment status.
When it comes to loans, it depends. Net income for child support is defined by statute, meaning it is determined by calculating the income of the supporting parent from all sources and subtracting specific deductions, such as premiums from health insurance and taxes, among others. These deductions can also include expenditures that were made to repay debts for reasonable expenses for income generation or for medical expenses.
In such cases, the court can reduce the net income, keeping the minimum child support amount that is due, and will enter an order for approved modifications once that payment period is completed. In either case, before you claim gifts or loans as income, you should first have an attorney go through them and evaluate your financial health. You may not be eligible for a reduction in child support payments – and if you are, your family attorney can help you come up with a good defense.
A divorce can be a devastating blow for anyone’s mental and physical health. Add to that stress child support payments and your financial health also takes a hit. At this time, you need a lawyer who has your best interests at heart, such as the ones at the Law Office of Fedor Kozlov, P.C.
Our dedicated child support attorneys have ample experience evaluating legal options and dealing with all aspects of divorce, including child support. We will work closely with you at every stage of the process so get in touch with us today in Schaumburg, Illinois. We offer aggressive advocacy, honest advice, and incredible service. Most people come to us through recommendations, which only show our high success rate and popularity.