Non-Traditional Income Sources and Divorce

 

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:

  • Unemployment
  • Bonuses
  • Commissions
  • Rental income
  • Business income
  • Interests and dividends
  • Most social security benefits
  • Pensions
  • Annuities
  • Severance pay
  • Royalties
  • 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) 795-1557,

fill out our

online form, or email us at [email protected] 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.