An overarching concern of every individual going through a divorce is their financial ability to afford a divorce and afford to be financially independent from their spouse. There are many details of a divorce that consider the income of each spouse, such as child support, alimony, and equitable distribution. Therefore, it is imperative that you and your spouse provide accurate details as to your respective incomes. When consulting with your attorney discuss in detail the manner in which your income may affect your divorce and what the court considers income for these specific purposes.
One of the most important details to note regarding income calculations is the difference between gross and net income. Within a divorce proceeding, the court is concerned with an individual’s net income. This includes their gross income minus the proper deductions allowed by statute. For example, many find this number on their tax returns as these documents can provide the individual with an accurate gross income along with each deduction taken to provide the calculated net income.
However, if you wish to perform a present calculation of your net income, which is highly recommended, you will need to begin by identifying your gross income. Gross income includes any item that provides you with a source of monetary benefit. Florida Statute 61.30 provides specific details regarding the sources of income considered by the court. Although this statute is specifically referring to child support, these sources of income are the same across of the board for divorce proceedings. 61.30 provides, gross income includes any form of salary, hourly wages, bonuses, commissions, overtime pay, or tips received by a parent whether self-employed, contracted, or employed outside the home. Any benefits received from disability, worker’s compensation, unemployment, pension, retirement, annuity, or social security must also be accounted for. Further, alimony payments, rental income, interest, dividends royalties, trusts, or any other form of reimbursement or gain must be noted as income. Therefore, your general income from your fulltime, part time, contracted employment, as well as state or federal benefits, and other employment benefits received are considered to be a part of your income. After determining your gross income, you may deduct any federal, state or local tax deductions, union dues, insurance contributions, retirement payments, and child support payments to find your net income. This net income will be the number used by the court in your divorce proceedings.
Although income can be easy to calculate for many individuals, others have a great deal of sources and benefits that may need to be considered. Ensure you not only properly calculate your own income but also have proper calculations for the income of your spouse during your divorce proceedings as there are many crucial details of your divorce that these numbers are based upon. Discuss theses calculations with your Pensacola Divorce Attorney to gain adequate knowledge and understanding of this potentially complicated process.
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