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NickyP211

Income for the purpose of determining Child Support

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I am currently paying Child Support based on my Income  and a monthly car allowance.  My car allowance allows me to purchase, insure (my company is listed an additional insured), and maintain my vehicle.  It is reported on my yearly W2"s as income.  My tax returns show that my car is used 90% for business.

 

I cited a NH case,  Albert vs. McRae (No. 2006-139)  that claimed W2 income reported was "passive income" as the monies were used to pay down a mortgage on rental property and should not be considered as income for the purposes of Child Support.

 

The Court Hearing Officer didn't even acknowledge my citing or write an explanation in her decision.  The decision simply stated "Your auto allowance will be will be used for the purposes of calculating Child Support." 

 

Is there a better way to argue that it should not be considered as income as most of my allowance of $550.00 goes directly back into my auto expenses. 

 

 

 

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You are reading more into that case than what it stands for.  It doesn't say all passive income isn't income for purposes of child support.  Money from an employer vs. passive income from an S Corp or LLC that you are a part of are two different things.  The money the trial court calculated in that case with regard to the holding company was not money the Respondent actually received.    In you're situation, you actually receive the money.   I'd suggest you consult local counsel. 

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Hi @NickyP211

 

Welcome to the Answers community and thanks for posting! As others have mentioned, Albert v. McRae is a case that addresses passive income used to pay down a mortgage, not reimbursement for auto expenses. This is likely why the court did not refer to this case in making a decision.

 

When calculating gross income for purposes of guideline child support, the court can consider any sort of income, including employment "perks" such as reimbursement for auto expenses. It's understandable that this feels unfair to you because this auto reimbursement goes directly to pay auto expenses, not into your pocket. However, look at it this way: because your car expenses are reimbursed by your employer, that frees up a part of your salary which otherwise would have gone to maintaining your car, and that portion is now available to pay child support. Even if you use the car 90% for work, if you are also using it as a personal vehicle, then that is a personal expense that is reimbursed by your employer and this "perk" can be considered by the court as income when calculating child support.

 

Let us know if you have additional questions!

The FindLaw.com Team

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