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Child support calculations in Minnesota rely on a key factor: the determination of each parent’s income. Understanding how income is assessed is essential for parents involved in family law cases, whether they are paying or receiving support. Minnesota law follows specific guidelines to ensure a fair calculation based on financial realities while prioritizing the best interests of the child.

Statutory Framework for Determining Income

Minnesota’s child support laws are primarily governed by Minnesota Statutes Section 518A, which establishes the process for calculating child support obligations. The statute defines “income” broadly to include various sources of earnings, ensuring a comprehensive evaluation of a parent’s financial ability to support their child. The determination of income is the foundation for applying the Income Shares Model, which divides the financial responsibility proportionally between both parents.

Types of Income Considered for Child Support

Minnesota law considers a wide range of income sources when calculating child support obligations. These include, but are not limited to:

1. Earned Income

Earned income consists of wages, salaries, and other compensation received for work performed. This includes:

  • Hourly wages and salaries
  • Bonuses and commissions
  • Overtime pay (if it is regular and consistent)
  • Self-employment income (after deducting reasonable business expenses)
  • Tips and gratuities

Self-employment income requires special attention, as Minnesota courts will consider an individual’s gross receipts and deduct necessary expenses to determine net earnings. However, deductions for excessive expenses or personal benefits taken through a business may be scrutinized to prevent the underreporting of income.

2. Unearned Income

Unearned income is also factored into child support calculations. This includes:

  • Social Security benefits (except for Supplemental Security Income or SSI, which is need-based and not counted)
  • Unemployment benefits
  • Workers’ compensation payments
  • Pension or retirement benefits
  • Dividends and interest income
  • Capital gains
  • Rental income (after reasonable expenses)
  • Trust disbursements

3. Government Assistance and Disability Benefits

Public assistance payments such as MFIP (Minnesota Family Investment Program) and SSI are not included as income. However, VA disability benefits and Social Security Disability Insurance (SSDI) benefits are generally included in income calculations. If a child receives dependent benefits due to a parent’s disability, those payments may be credited toward the child support obligation.

4. Spousal Maintenance (Alimony)

Spousal maintenance received is included as income for the recipient and deducted from the income of the paying spouse. This ensures that both parents’ financial situations are fairly represented when calculating child support.

Imputing Income When a Parent is Underemployed or Unemployed

Minnesota courts have the discretion to impute income to a parent who is voluntarily unemployed or underemployed to avoid paying child support. Courts will assess whether the underemployment is intentional and whether the parent has the ability to earn more based on their education, job history, and labor market conditions.

Factors considered when imputing income include:

  • Employment history and earning capacity
  • Education, training, and skills
  • Job opportunities in the area
  • Efforts made to seek employment
  • Whether the underemployment is for legitimate reasons (e.g., disability or necessary caregiving responsibilities)

If a parent is voluntarily underemployed, the court may assign income based on full-time employment at 150% of the federal or state minimum wage, whichever is higher, unless evidence suggests a different earning capacity.

Modifications Based on Income Changes

Child support modification obligations are not set in stone. If a parent experiences a significant change in income, they may petition the court for a modification of child support under Minnesota Statutes Section 518A.39. Grounds for modification include:

  • Loss of employment or substantial reduction in income
  • Significant increase in income of either parent
  • Change in medical or childcare expenses
  • A substantial change in parenting time arrangements

To seek a modification, the requesting party must prove that the change is substantial and ongoing, not just temporary.

Conclusion

Determining income for child support in Minnesota involves analyzing a parent’s total earnings, including wages, self-employment income, unearned income, and certain benefits. Courts may also impute income when necessary to prevent intentional underemployment. Understanding these guidelines helps ensure that child support obligations are fair and reflective of both parents’ financial situations while prioritizing the best interests of the child.

For parents navigating family law matters, consulting with an experienced divorce or custody lawyer can provide valuable guidance in ensuring accurate income calculations and appropriate support determinations.