How is Child Support Calculated in Illinois if a Parent is Self-Employed?  

 Posted on June 07, 2022 in Divorce

The state of Illinois determines child support payments using a strategy known as the “income shares method.” Because so many children have parents who both work, the income shares method effectuates the most practical child support payments by taking both parents’ incomes into consideration. 

For parents who are W2 employees, calculating child support is fairly straightforward. When one parent or both parents are self-employed, however, there can be some questions when determining a parent’s true income - and whether that full income is being disclosed during divorce. 

Who is Considered Self-Employed? 

Self-employment is very common, especially because so many people work part-time in the so-called “gig economy.” Jobs that are considered self-employment include, but are not limited to: 

• Sole proprietorship businesses

• Business partnerships

• Independent distributors

• Freelance workers

• Independent contractors

Rideshare drivers, delivery drivers, tutors, and even home cleaners may be self-employed depending on the nature of their work. No matter how unpredictable, intermittent, or on-demand the work is, any income it generates needs to be taken into consideration for child support. 

How is Self-Employment Income Estimated? 

Certain types of self-employment can make it difficult to bring in a consistent income stream. Further complicating the income stream are the expenses involved with self-employment. When it comes to determining child support payments, a parent’s net income - their gross income minus any expenses - is what counts. When determining net income, it is important to consider all sources of income (even those not reported to the IRS).

What if a Spouse is Hiding Income? 

Unfortunately, some spouses do try to hide income to try to lessen their child support and spousal support payments. Outside professionals like divorce lawyers, forensic accountants, and private investigators are often helpful for doing the research to determine a parent’s true income. And if a parent is discovered to have lied about their income, he or she can face harsh court sanctions, making it a strategy that often backfires. 

Contact a Wheaton, IL Child Support Lawyer

With the help of an experienced DuPage County child support attorney, determining your financial obligations to your child does not have to be a nightmare. For help in even the most complex divorces, work with the skilled team of attorneys at The Stogsdill Law Firm, P.C.. Whether in private negotiations or in the courtroom, our firm has a long history of defending our clients’ interests and protecting their rights. Call us at 630-462-9500 to schedule your confidential consultation at your earliest convenience. 

Source: 

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075000050HPt%2E+V&ActID=2086&ChapterID=59&SeqStart=6200000&SeqEnd=8675000