How is net disposable income calculated?
Generally, most sources of income are included in net disposable income (e.g. salary, dividends, pensions, social security benefits, trust income, workers’ comp, spousal support from another relationship). The court even has discretion to impute earning capacity on a parent to include in disposable income. However, the following are excluded from the disposable income calculation: income from child support payments (including from other relationships), income from spousal support from the relationship at issue, income from SSI benefits, certain gifts and inheritance, proceeds received as a life insurance beneficiary, and student loan income. Usually, a parent’s gross income as stated on tax returns is presumed to be the correct income for determining child support. Most discretionary parental spending is not deducted from net disposable income. For example, spending on rent, food, cloth and entertainment does not affect disposable income for support purposes. Nondiscretionary spending
