Adding Up Income
Your income is an important number to calculate in your divorce. Income can affect child support, alimony, and even the division of assets and debts. Both traditional and non-traditional income sources must be included in the calculation. Traditional income sources include earnings such as salary and wages. Non-traditional income sources can include many other sources, including:
- Rental income
- Business income
- Interests and dividends
- Most social security benefits
- Severance pay
- Veterans’ benefits
- Military allowances
- Insurance benefits
- Workers’ comp
- Estate or trust funds
- Some capital gains
Calculating Non-Traditional Income Sources
These are just some of the sources of income that you may need to include in your calculation. You must include income sources whether or not they are taxable. Non-traditional income sources differ in that they can be fluctuating, periodic, short-term, or supplementary. Thus, many people fail to include these sources in their income calculations. When calculating your income, remember to include funds you expect to receive, such as a yearly bonus, as well as funds you receive periodically, such as quarterly payouts. Then include this income figure in your financial statement, which both spouses are required to fill out and submit. You will have to input your weekly income in the financial statement, but there are instructions on how to calculate this. You must complete a financial statement even if you are filing for an uncontested divorce.
What Income Will Affect
You need to calculate your income to determine child support and alimony payments. Massachusetts child support is based on the parents’ income from all sources and parenting time. You can use income as a guideline for alimony as well. In order to ensure you are creating a truly fair separation agreement, you and your spouse will need to calculate your income using both traditional and non-traditional income sources. Speak with an experienced divorce mediator if you have questions about your income and how it could affect your divorce. If you have no income or are expecting a change in income with the divorce, you will need to work closely with a mediator and your spouse to ensure your financial agreements are fair and reasonable.
Do you have questions about calculating your income? Mediation Advantage Services can help you. Experienced in divorce mediation, family law attorney Polly A. Tatum can help you and your spouse with your divorce financials. Based in historic Worcester with a satellite office in Northboro, MA, our firm serves all cities and towns throughout Massachusetts and Worcester County including, Auburn, Paxton, Leicester, Sutton, Grafton, Shrewsbury, Westboro, Northboro, Southboro, Holden, Sterling, Princeton, Worcester, Charlton, Millbury, Dudley, Spencer, Brookfield, Sudbury, Natick, Framingham, Hopkinton, Milford, Blackstone, Leominster, Fitchburg, Acton, Jefferson, Barre, Oakham, Cambridge, Newton, Marlboro, Lancaster, Bolton, and Hudson. Call our office at (508) 645-6374, fill out our online form, or email us at email@example.com today to schedule your Complimentary Mediation Success Planning Session. You can also sign up for our eNewsletter or download our free e-book for more information regarding divorce in Massachusetts.