NJ Divorce and Determining Income of the Parties for Purposes of Calculating Child Support, Alimony and Payment for Other Shared Expenses
NJ Divorce and Determining Income of the Parties for Purposes of Calculating Child Support, Alimony and Payment for Other Shared Expenses. In a New Jersey Divorce, the parties generally have to determine the income of each other in order to calculate the amounts of child support, alimony and payments of other shared expenses they will have going forward postjudgment after the divorce. Often times, the parties may have a hard time doing this for a variety of reasons such as recent loss of employment of one party, unknown income of one party, self-employment by one party in a personal business with business costs being expensed or in some situations, cash businesses. In some situations, where there is a large amount of cash income potential, a forensic accountant may have to be hired to evaluate the parties bank accounts, living expenses and business records to determine the actual income of a party and if there is a cash component to income. Parties may have a "Sheridan" issue, that is an issue where they have both signed off on tax returns stating certain income when in fact they are both aware that additional cash income is being expensed in a manner that it is actually supporting the marital lifestyle. Parties to a New Jersey divorce may realize it is in their best interest to agree on incomes in their property settlement agreement that take into account how a business is supporting the actual marital lifestyle. When a party has recently lost employment, it must be determined whether this is a temporary situation or a more permanent situation. This may require an employment expert to determine the potential for income to be made by the party that has recently lost employment. Determining income for the parties is very important in a New Jersey divorce because from that flows calculation for child support and alimony. Child support is generally based on two factors, the amount of gross income of the parties and the number of overnights per year of each party. In New Jersey, their are child support guidelines that assist in the calculation of child support to be paid by the parties. Additional credits are given to those that pay the medical insurance for the child and for the cost of work-related child support. Alimony received or paid is also either added to a party receiving alimony or deducted from the party paying alimony. Alimony is more discretionary and the amount of alimony, as opposed to the term of alimony, is generally based on either a third of the difference in income or a needs based analysis based on "Crews" factors, outlined in the case law of "Crews v. Crews". Whatever your issue may be regarding the calculation of income for your NJ divorce, our NJ divorce attorney and NJ divorce lawyer at Green & Associates can help you. Call us at 732-390-0480 or 201-242-1119 for set up a free consultation regarding the issues of calculating income in a New Jersey divorce in our East Brunswick or Fort Lee office today. We encourage you to ask us about our flat fee divorce structure for default or limited uncontested divorces in New Jersey that can save you time and money in your divorce. We serve all of central and northern New Jersey, including towns such as Parlin, South River, North Brunswick, South Brunswick, New Brunswick, Piscataway, Franklin Park, Somerset, Monroe Township, Sayreville, Milltown, East Brunswick, Edison, Woodbridge, Iselin, Highland Park, Old Bridge, Marlboro, Manalapan, Fort Lee, Cliffside Park, Leonia, Edgewater, Englewood, Teaneck, Fairlawn, Ridgewood, Hackensack and others.