Many employees look forward to year-end bonuses as the holiday season approaches. For divorced parents, these financial windfalls can raise important questions about child support obligations. Does that extra income affect your payments or receipts?
The additional money can complicate child support calculations
Florida law defines income broadly, encompassing more than just regular wages. It includes:
- Salaries and wages
- Bonuses and commissions
- Business income
- Disability benefits
- Workers’ compensation benefits
- Unemployment benefits
- Pension or retirement payments
- Social Security benefits
- Spousal support from a previous marriage
In Florida, courts calculate child support using the Income Shares Model, which accounts for both parents’ incomes and the child’s overnight stays with each parent. Holiday bonuses fall under this definition of income, so they can indeed affect child support calculations.
The impact can depend on various factors. These may include the amount of the bonus, the regularity with which it is received and the existing child support arrangement. When a parent gets a substantial bonus, it can increase their total income and potentially lead to a modification of the child support order.
A holiday bonus might temporarily increase child support payments for the paying parent. It could also mean a one-time additional payment or a recalculation of regular support amounts for the receiving parent.
It is important to note that Florida law requires parents to report any substantial changes in income, including receiving a significant bonus. Failure to report such changes could lead to legal consequences.
Securing the best outcome for your children
Child support aims to provide for the needs of the children involved. When addressing these legal matters, it is essential to have a qualified attorney on your side. Remember, your child’s financial well-being depends on accurate and fair support calculations.