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

When a parent is self-employed, calculating child support may be more complicated than when both parents have an employer. Washington State utilizes the Income Shares Model to calculate child support. This model takes into consideration both parents’ gross incomes and the amount of time they will each be responsible for the child to come up with an appropriate support amount. The first step in calculating child support when a parent is self-employed is to determine their gross income. This requires an independent review of the parents’ tax returns to get an accurate picture of their income and expenses. It is important to remember that the parent’s net income after expenses is not used in the calculation of child support. Instead, the parent’s gross business income is used. Washington State also takes into account bonuses, capital gains, and other sources of income. Once the parent’s income is determined their child support payments are calculated using the Income Shares Model. This model takes into account each parent’s income and the percentage of time that parent will be responsible for the child to come up with an appropriate child support payment amount. It is important for parents who are self-employed to realize that the court may take their overall financial situation into account when calculating child support payments. Ultimately, calculating child support when a parent is self-employed is complex and requires an understanding of Washington State’s Income Shares Model and the parent’s financial records. If your situation requires the calculation of child support by a court, it is important to have an understanding of the model and to make sure the court is accurately calculating support payments based on your financial situation.

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

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