In Maryland, divorcing parents who have minor children will be required to support their children through child support payment obligations. Both parents are responsible for child support. A custodial parent will “pay” child support by providing basic necessities for the child’s welfare and upbringing. A non-custodial parent will pay child support through money transfers.

How is “income” used in calculating child support?

In Maryland — as in many other States — the amount of child support is based on the joint income of the parents with the specific child support obligation being divided between the parents based on each parent’s percentage of their total income. So, a parent earning 60% of the joint income will pay 60% of the child support. The specific amount of monthly child support based on the parents’ income is calculated using the Maryland Guidelines. See Md. Fam. Law Code, § 12-204. These Guidelines are statutory amounts that Maryland’s lawmakers have decided are the appropriate amounts that parents should spend for the upbringing of their children.

However, divorcing parents are often confused about how “income” is defined. An explanation is provided below by the Southern Maryland Divorce and Child Support Lawyers here at the Law Office of Robert Castro. Call us at (301) 870-1200 or use our contact page. We provide family law legal services for Waldorf, La Plata. Clinton, Bowie, Greenbelt, Landover and other communities in Southern Maryland.

What is “income” for Maryland child support calculations?

According to Maryland Family Code, §12–201, “income” is defined as “income from any source” with some exceptions. “Income” means “… gross receipts minus ordinary and necessary expenses required to produce income” for parents who are self-employed, have rental or royalty income or who are sole proprietors of a business or have joint ownership of a partnership or a closely held corporation. The statute specifically lists the following as examples of actual income:

• Salaries
• Wages
• Commissions
• Bonuses
• Dividend income
• Pension income
• Interest income
• Trust income
• Annuity income
• Social Security benefits
• Workers’ compensation benefits
• Unemployment insurance benefits
• Disability insurance benefits
• For the obligor, any third party payment paid to or for a minor child as a result of the obligor’s disability, retirement, or other compensable claim
• Alimony or maintenance received from a previous divorce or to be received in the current case
• Expense reimbursements or in-kind payments received by a parent in the course of employment, self-employment, or operation of a business to the extent the reimbursements or payments reduce the parent’s personal living expenses

In addition, Maryland divorce courts are allowed to evaluate whether, based on the circumstances of the case, other sources of money might be considered as “income.” These include severance pay, capital gains, gives and/or prizes.

Exclusions

Money that is not included as “income” are any benefits received from means-tested public assistance programs, including temporary cash assistance, Supplemental Security Income, food stamps, and transitional emergency, medical, and housing assistance.

Contact Waldorf, Maryland Family Law and Child Custody Lawyer Robert Castro Today

This article has been provided by the Law Office of Robert Castro. For more information or questions, contact our office to speak to an experienced Maryland family law and divorce lawyer at (301) 870-1200. We are Waldorf, MD, Family Law lawyers. Our address is 2670 Crain Highway, Waldorf, MD, 20601.