Child Support Cases involving Self-Employed Parents

In North Carolina, parents who no longer live together must each share the financial responsibility of caring for their child. Child support guidelines are often hard to understand, and many factors may have an impact on the eventual decision of the Wake County Family Court on the child support obligations of parents who live in Wake County. NC Family Law Attorneys are well-equipped to navigate all of the intricacies of the North Carolina guidelines and statutes that pertain to this particular kind of law. Lawyers are of especially valuable assistance when one parent is self-employed and facing child support payments.

The guidelines that determine the amount of child support obligation in North Carolina are designed to provide an adequate amount of child support that is fair to the child and to both of the child’s parents. These child support obligations are based on the amount of total gross income that each parent receives. The court incorporates the federal tax rates and North Carolina tax rates when determining each parent’s amount of total gross income. This total gross income is income received by the parent before any kind of deductions are made for federal or North Carolina taxes or other amounts withheld from income.

For cases where one parent is self-employed, figuring out the amount of total gross income may be tricky. Parents who are self-employed or who own their own business must take more care to report the amount of income properly to the court. The court determines business expenses required for self-employment differently than the Internal Revenue Service. When determining the amount of total gross income for tax purposes for the IRS, certain business expenses can be written off. These same business expenses may not always be excluded by the parent when determining a child support obligation. Since total gross income for IRS may differ from the amount of total gross income for child support, North Carolina attorneys may be helpful when carefully reviewing all amounts of income.

North Carolina General Statute 50-13.4 guides the process for reviewing these guidelines every four years to ensure that they are appropriate for parents and children in places such as Wake County and all of North Carolina. Child support guidelines are challenging to work through, and require the use of attorneys to ensure that each parent has reported their income fairly in order to best support the child.