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Did You Know...
Family Law Software can calculate child support guideline amounts in 21 states.
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Question: Why does the bottom line of the Budget Report not match the net income from the Child Support or from my state's financial statement (Affidavit, Net Worth Statement, Case Information Statement, Sworn Financial Statement, Disclosure Statement, Income & Expense Statement, etc.)?
Answer: The Budget Report is attempting to show actual cash flow.
This may either be pro forma (in monthly view) or actual for the current year (in annual view).
If you are viewing the Budget Report in monthly view, then the reasons explained in this FAQ may explain the differences.
But there are other reasons as well, which are explained below.
Net income from child support is typically very different from net income in a financial sense. (The Budget Report aims to show net income in a financial sense.)
Net income for child support purposes is typically gross income less certain deductions that are specified to be acceptable for child support purposes. Typically, these include health insurance, child care, sometimes child and spousal support of prior relationships and sometimes spousal support of the current relationship.
Although the worksheet may call this "net income," it is not net income in the financial sense of the term. Rather, it means gross income after these few specified allowable deductions.
The financial statement for your state is getting closer to an attempt to show net income in the financial sense, but it too is likely to be different from the Budget Report.
The financial statement does not always include all expenses.
For example, you may have specified that IRA contributions should appear on the Budget Report. (This is an option that you can reach by clicking the link at the top of the Budget Report.) In most states, however, IRA contributions are not listed as expenses.
Most states financial statements also do not include child support, which is on the Budget Report.
Many states financial statements do not include spousal support of the current relationship, and this is on the Budget Report.
In addition, there is a legal principle that courts should be reluctant to consider any item that is hypothetical. As a result, if an item is specified to take place in the future, you may see it on the Budget Report, but not on the Financial Statement.
For example, if you have specified that a new home will be purchased, the cash flows for the new home will appear on the Budget Report, but will not appear on the state financial statements.