Texas Child Support 101: What is Considered Net Income?
To calculate current child support, courts must determine the amount of the obligor’s income available for support (“net resources”) and apply the child-support guidelines to the obligor’s net resources.
The purpose of child support is to help a custodial parent maintain an adequate standard of living for a child. A parent’s child support obligation is not limited to that parent’s ability to pay from current earnings, rather it extends to his or her financial ability to pay from any and all available sources.
The Family code provides a list of about twenty-six sources of income that are to be considered when determining an obligor’s net resources. These include: (1) wages, (2) salaries, (3) commissions, (4) bonuses, (5) overtime, (6) tips, (7) interest, (8) dividends, (9) royalty income, (10) rental income, (11) severance pay, (12) retirement benefits, (13) pensions, (14) trust income, (15) annuities, (16) capital gains, (17) social security (excluding supp. income), (18) unemployment, (19) disability, (20) worker’s compensation, (21) interest on notes, (22) gifts, (23) prizes, (24) spousal maintenance, (25) alimony, and (26) self employment income.