Understanding Support Payments When the Payor’s Income Is Irregular

During a marital separation (divorce), it is just normal that the parent who doesn’t have custody of the child pay a certain amount of money to the spouse and kid(s) to help support their monthly upkeep. 

Every court of law looks to justify the amount payable in support by the income of the payor. The case gets even more interesting when the payor does not have a regular income to fall back on. 

Incidences of Irregular Income

There are a series of factors which could lead to an individual’s income being unpredictable. 

One of the biggest ones comes with those who work for themselves. In such a position, there is no guaranteed salary since business can either be faster or slower on some weeks/ months. 

Individuals who operate a client-based business are also in the same shoes.

Whether the service being offered is a one-off thing or based on a recurrent subscription, a number of clients can either be added to or removed from the billing sheet anytime. Such additions or removals are incalculable –most likely leading to problems in the determination of an income base.

Take for example, a doctor who earns a total salary of $900,000 every year.A person making this salary would receive a $650,000 salary and a $250,000 dividend.

How the Support Payments are Calculated

The law aims at being fair to all parties involved, and that includes the payor too. The best support payment plan for a spouse with custody will also take into account the payor’s expected earnings.

Even though the income is irregular, the judge can make calculations based on average earnings of the payor. To estimate an average income value, go through their books and worksheets.

Recall the case of bonuses and dividends on standard basic salary payments as discussed above. If the payor has a bonus, they are required to pay a percentage of it in support.

The court doesn’t put too much pressure on the payor to transfer a high percentage of their income to the other spouse.

Managing the Situation Better

A divorce lawyer can help you understand the legal process during a divorce. These lawyers will evaluate your case and help you financially prepare for a possible ruling.

If you have any additional questions or if you would like to discuss your matter with us further, feel free to call us at 905-366-0202 to arrange a free consultation. Alternatively, you can reach us via our website here

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