Non-Recurring Income and Its Impact on Child Support?

Child support calculations in Illinois are designed to ensure that children receive the financial support they need from both parents. The process takes into account various types of income to determine the appropriate amount of child support. Non-recurring income, such as bonuses, inheritances, or one-time financial gains, may cause adjustments to support calculations by allowing the court discretionary authority to determine the actual earnings of the party receiving non-recurring income.

“While non-recurring income may properly be included in calculating net income for purposes of child support ( In re Marriage of Hart (1990), 194 Ill. App. 3d 839, [*484] 551 N.E.2d 737),this is not an inflexible rule and the trial court has the discretion to exclude such income. To hold otherwise could lead to absurd results, as where a party’s income is artificially inflated by a large capital gain on the sale of a residence. We believe that such determinations are best left to the sound discretion of the trial court.” In re Marriage of Miller, 231 Ill. 3d 480.

Understanding Non-Recurring Income

Non-recurring income refers to any monies that are not received on a regular basis (i.e. amount and/or frequency). Examples include:

  • Year-end bonuses
  • Inheritances
  • Lottery winnings
  • Sale of property or investments
  • One-time payouts from lawsuits or settlements

Such income can significantly boost a parent’s financial resources temporarily, but it does not provide ongoing financial stability.

Inclusion in Child Support Calculations

Illinois courts have the discretion to include non-recurring income in child support calculations if they believe it is in the best interest of the child. The key consideration is whether including this income will provide a fairer and more accurate reflection of the parent’s financial ability to support their child. Courts will evaluate the nature and amount of the non-recurring income, as well as its potential impact on the child’s well-being.

Practical Application

When determining whether to include non-recurring income, courts may:

  • Evaluate the Source: Assess the origin of the non-recurring income. For example, a significant bonus earned for exceptional work performance may be treated differently than a lottery winning would be, which is purely a matter of chance.
  • Consider Frequency: Determine how often the non-recurring income is received. If a parent regularly receives bonuses, even if they are not guaranteed said bonus, the court may consider the bonuses as part of the parent’s income.
  • Proportionality: Decide if a portion of the non-recurring income should be allocated toward child support. For example, a one-time inheritance may not be included as income, in part or in whole.

Adjustments and Modifications

Including non-recurring income in child support calculations can also lead to adjustments in the support order. If a parent experiences a significant windfall, the court may adjust the child support amount temporarily to reflect the increased financial capacity. Conversely, if the non-recurring income leads to a temporary spike in support payments, the court may later review and adjust the support order to ensure it remains fair and sustainable.

Challenges and Considerations

One of the challenges with non-recurring income is for the court to ensure fairness and consistency. While it is crucial to consider the child’s best interests, it is equally important for the court not to impose an unreasonable financial burden on the parent. Courts seek to strike a balance between utilizing non-recurring income to benefit the child and recognizing the temporary nature of such income.

In conclusion, non-recurring income can have a significant impact on child support calculations in Illinois. Courts carefully consider the nature, source, and frequency of this income to determine its inclusion in support calculations. By doing so, they aim to create a fair and balanced support order that reflects the parent’s true financial capabilities while prioritizing the child’s needs. If you need help with pursuing or defending your Illinois child support lawsuit please click the link below contact our Chicago office and speak with one of our experienced family law attorneys https://jacobsonlegalservices.com/!