03 Feb What To Know About Child Support on a Freelance Income in WA
Freelancing offers incredible freedom and flexibility, but that variability can complicate things during a divorce. If you or your co-parent relies on gig work, consulting fees, or sporadic contracts, calculating child support is not as straightforward as looking at a W-2. Read on to explore what to know about child support on a freelance income, as per the Washington State Support Schedule.
How Courts Determine Income for Freelancers
Washington courts aim to establish a fair support order based on the combined monthly net income of both parents. For traditional employees, this means checking pay stubs. However, for freelancers, the court looks at a broader financial picture to determine your actual earning capacity. This process often involves reviewing tax returns, bank statements, profit and loss statements, and 1099 forms from the past two years.
Additionally, the court scrutinizes business expenses. While you might legitimately write off certain costs for tax purposes, family law courts may add some of those deductions back into your gross income if they function as personal living expenses. Consequently, what the IRS sees as your income and what the family court sees as your income can differ.
Imputed Income: What Happens When Income Drops
If a freelancer’s income decreases significantly, courts may consider whether the parent is voluntarily underemployed. In this situation, the court may find it appropriate to apply “imputed income.” This means support is calculated based on what the parent could reasonably earn, factoring in their employment history, education, skills, and the local job market. It ensures parents are contributing fairly, even during periods of reduced earnings.
Modifying Support when Income Fluctuates
Freelance income is often inconsistent. You might experience record-breaking earnings followed immediately by the slowest month you have ever had.
Washington law acknowledges this reality and allows parents to request a modification to their child support order if there is a substantial change in circumstances, such as an involuntary income drop or a significant increase in earnings. However, parents must formally petition the court for modifications—stopping or altering payments without court approval can lead to legal consequences.
Keeping detailed financial records is essential. Maintain organized files of contracts, invoices, receipts, and correspondence regarding work opportunities to provide proof of income fluctuations.
Get Clarity on Your Child Support Case
Calculating child support on a freelance income is complex, but you do not have to guess. At LaCoste Family Law, we understand the intricacies of self-employment and family law in Washington State.
If you need a child support lawyer in Washington State, contact us to discuss your situation. We serve families in Kennewick, Pasco, and Richland.