Are you involved in a divorce or child custody case involving income for support purposes? An experienced divorce and child custody lawyer and team can guide you through the legal process to assist in exploring your options. You have one bite at the apple in the court system so make it count.
In order to calculate support, courts first must determine income. Income is broadly defined in both C.R.S. §14-10-114(8)(c)(I) and C.R.S §14-10- 115(5)(a)(I). Parties often focus on W-2 income, however many people often have other sources of income or they are self-employed which requires a more detailed analysis. Following is information on other common income sources:
LIKE-KIND INCOMEOne source of income is “like-kind” income that comes from nonmonetary benefits. C.R.S. §14-10-114(8)(c)(I)(X) provides that “expense reimbursements or in-kind payments received by a party in the court of employment, self-employment, or operation of
the business if they are significant and reduce personal living expenses.” For example,
housing and food allowances re intended to reimburse an employee are income. In re Parental Responsibilities of L.K.Y. 410 P.3d 492, 493-494 (Colo. App.) 2013. Another common in kind payment is a vehicle allowance from an employer.
CAPITAL GAINS, INTEREST AND DIVIDENDSOther kinds of income that do not come from direct employer payments are capital gains, interest and dividends, are income as long as they are actually withdrawn. C.R.S. §14-10-114(8)(c)(I)(N), C.R.S. 14-10-115(5)(a)(I)(N), & C.R.S. § 14-10-115(5)(a)(II)(E). However, keep in mind that unrealized compensation from assets, such as deferred interest, can be considered income if available to the party to meet living expenses or to increase their standard of living. In re Marriage of Schaefer and DePumpo, 522 P.3d 732, 736 (Colo. App. 2022). Therefore, failing to take certain income options do not necessarily insulate a party from having it count as income.
Turning Change Into Opportunity in Colorado Springs, ColoradoA knowledgeable and experienced divorce and family lawyer and legal team can guide you through Colorado Springs divorce and family law matters by negotiating, mediating and litigating on your behalf. You can focus on moving on to a better future instead of spending your time attempting to navigate complex legal rules and procedures.
Sabra Janko from Janko Family Law has more than 20 years of legal experience and has written “the book” on Colorado divorce and family law – “Colorado Family Law With Forms”, published by LexisNexis, which you can find at https://store.lexisnexis.com/products/colorado-family-law-with-forms-skuSKU02903. Contact us at 719-344-5523 or complete our online scheduling request for a free 30-minute informational consultation.