How is child support calculated when a parent is self-employed?

In the State of Virginia, the amount of child support for a parent who is self-employed is calculated using their gross income minus allowable tax deductions. The self-employed parent must provide documentation of their income, such as tax returns, business records, and bank statements. The court will then review the parent’s income and expenses to determine the actual income for the purpose of calculating child support. Expenses that may be considered in the calculation include reasonable business expenses, such as cost of goods sold, labor costs, overhead expenses, and depreciation. All expenses must be related to the self-employed parent’s business and must be deemed reasonable by the court. In general, the more documentation that is provided and the more detailed the records, the better the court will be able to calculate an accurate child support amount. In some cases, the self-employed parent may be able to reduce the amount of child support by demonstrating that their business is not profitable. Therefore, it is important to be aware of the details of the calculation process in order to make sure that the child support amount is fair and appropriate. In addition to the income calculation, the court will also review the self-employed parent’s overall financial situation, such as their assets, debts, and other financial obligations, to ensure that all aspects of the individual’s income are accounted for in the calculation.

Related FAQs

How does arrearage affect a child support order?
Are there ways to reduce the amount of child support I owe?
What is the difference between temporary and permanent child support?
What are the consequences of not paying child support?
Does the amount of time a child spends with each parent affect the amount of child support?
How does a non-custodial parent prove child support payments?
How is child support determined?
What is the difference between a sole and joint custody arrangement?
How can I locate a parent who has not met their child support obligations?
How long does it take for a child support order to be put into effect?

How is child support calculated when a parent is self-employed?

Related FAQs

Related Blog Posts