What Sources of Income are Used to Calculate Child Support in North Carolina?

Regular employment income is not the only type of income that can be used to determine child support obligations in North Carolina. The state’s child support guidelines allow a variety of financial sources to be considered as income for support purposes, including salaries, wages, commissions, dividends, pensions, trusts, unemployment benefits, gifts, prizes, and self-employment income.

Crenshaw v. Crenshaw

In the case of Crenshaw v. Crenshaw, Father appealed an order modifying child support, stating that some of Mother’s income sources were not considered by the trial court. The appellate court determined that the lower court’s findings were supported by competent evidence.

History of the Case

When the parties separated, child support was awarded to Mother according to the North Carolina child support guidelines. As of October 2012, Father was to pay Mother $1,741.42 in child support each month. This amount was based on the custody and visitation schedule at the time, during which Father had visitation approximately 134 nights per year and Mother had 231 nights.

In January 2018, the trial court entered a consent order regarding custody and child support, granting Mother primary care, custody, and control of the parties’ three minor children with visitation to Father at the discretion of Mother. Father was ordered to continue paying the child support amount from the 2012 order.

In October 2020, Father filed a Motion to Modify Child Support, alleging a substantial change of circumstances had occurred. Mother filed her own Motion to Modify Child Support three months later. In June 2021, Mother filed a motion requesting a deviation from the North Carolina child support guidelines, stating that applying the guidelines would be unjust or inappropriate in this case.

Father’s Appeal

After many motions filed by Mother and Father regarding various issues in this case, a hearing was held in November 2022 on both parents’ motions to modify child support. Father was ordered to pay an increased amount of $2,230 per month in child support and $15,000 toward Mother’s attorney’s fees. Father appealed.

Father’s appeal focused mainly on the trial court’s findings regarding Mother’s income. He argued that Mother’s income, as shown on her W-2, did not accurately reflect her full income and that the trial court erred by not considering additional information to calculate his child support obligation. Mother testified that she regularly received funds from her family to help cover expenses and to purchase items she and the parties’ children needed, including $383,000 for the down payment on Mother’s home, half the cost of a vehicle for the parties’ son, college tuition, nanny expenses, and her use of the family’s airplane.

Despite the fact that Mother received various types of income, gifts, and financial assistance from multiple sources, Father failed to prove that the trial court did not consider these facts when calculating Mother’s income. The Court of Appeals stated that the lower court’s ruling appeared to have included Mother’s numerous sources of income, thus the trial court’s findings were supported by the evidence. Child support can be a complex issue, and an experienced family law attorney can help guide you through your case.