What Is Considered Income In A Florida Divorce?
A calculation of spouses’ income plays a pivotal role in the divorce proceedings. However, many spouses are not sure what counts as “income” for the purposes of equitable distribution, alimony, child support, and other aspects of a Florida divorce.
The amount of alimony and child support depends on each party’s income. That is why it is critical to understand how Florida courts calculate your income to determine child support and spousal support.
Consult with a knowledgeable divorce attorney in Orlando to determine what counts as income in divorce proceedings. Schedule a consultation with our lawyers at Greater Orlando Family Law by calling 407-377-6399.
Gross vs. net income in Florida divorce proceedings
To understand how Florida courts determine each party’s income in divorce proceedings, you need to understand the difference between net and gross income.
- Gross income includes most types of earned and unearned income.
- Net income is a spouse’s gross income after taking into account any allowable deductions.
Typically, your tax returns specify your gross income and each deduction that should be taken to calculate net income. It is highly advised to determine your net and gross income with the help of an Orlando divorce attorney to calculate your income correctly.
What sources of income are considered by the court?
Fla. Stat. § 61.30 specifies every source of income that will be considered by the court in divorce proceedings:
- Salaries, hourly wages, tips, and overtime pay
- Bonuses and commissions
- Social security benefits
- Royalties, dividends, and interest
- Workers’ compensation and unemployment benefits
- Renal income
- Pensions and annuities
- Disbursements from trusts
- Personal injury settlements
- Military pay
- Prizes, lotteries, and gambling winnings
All of these earnings and benefits are considered income in a Florida divorce. It is vital to speak with an experienced attorney to help you identify all gross income sources and calculate your net income, which will be used by the court in your divorce.
How do Florida courts calculate alimony and child support?
After determining a spouse’s gross income, the court will deduct any tax deductions (federal, state, and local), retirement payments, insurance contributions, and other allowable deductions to calculate net income.
In many cases, determining income is a straightforward process. In some cases, it can be difficult to correctly calculate your gross and net income, especially if you have a high net worth divorce.
However, your income is not the only factor considered when determining alimony and child support. Other factors that will be considered by the court when calculating alimony include:
- The duration of the marriage
- The standard of living during the marriage
- Each spouse’s physical health, earning capacity, and age
- Each spouse’s contributions to the marriage
- Responsibilities for minor children
In addition to income, other factors that will be considered when determining child support include:
- The number of children
- The child’s standard of living
- The custodial parent’s needs
- The parents’ timesharing plan
It is essential to consult with an Orlando family attorney to review your particular situation and determine your (and your spouse’s) net and gross income to ensure a fair child support or alimony award. Contact Greater Orlando Family Law to calculate income in your divorce case. Call 407-377-6399 for a free case evaluation.