What income numbers are used for a sole proprietor in determining child support payments owed- revenue, gross or net profit?

Domestic Relations typically uses net monthly income to calculate a support award. However, income for support purposes is not income as defined by the IRS. Certain income can be attributed to you as a sole proprietor depending on your business structure and practices.

Paying child support as a self-employed individual can be complicated, as a thorough analysis will go beyond the "bottom line" numbers on a tax return or balance sheet. For example, many self-employed individuals pay for personal expenses (such as a vehicle allowance or a cell phone bill) through the business, but might be added in as "income" for the purposes of child support, which focuses on your "cash flow" income rather than just "taxable income". You would be wise to consult with an attorney to review your income and prepare for the possible outcomes through domestic relations. You may contact our office if you would like to schedule a meeting.