The Law Office of Kurt H King

November 18, 2013

Unusual Varieties of Income for Child Support Calculations

Filed under: Divorce,Family Law,Paternity,Support — kurthking @ 9:23 pm
Tags: ,

Here is a list of some out-of-the-ordinary sources of gross income for child support calculations in Missouri–from Heckman v. Heckman, Slip Opinion WD75676 (October 15, 2013):

1.  salary, of course

2.  dividends, capital gains, annuities, pension and retirement benefits–but the increase in value of stock is GENERALLY NOT included unless it is liquidated so as to result in capital gain (Gordon v. Gordon, 924 S.W.2d 529, 533 (Mo. Ct. App. 1996))–HOWEVER, the employee’s sale of restricted stock issued by company to employee as part of compensation package may be treated as dividends and included in gross income–p. 8 of Heckman

3.  pre-tax “flex plan benefits”–citing Fulton v. Adams, 924 S.W.2d 548, 554 (Mo. Ct. App. 1996); but not employer contributions to retirement plan, Roberts v. Roberts, 847 S.W.2d 108, 109 (Mo. Ct. App. 1992)

4.  rent received is included–Graves v. Graves, 967 S.W.2d 632,641 (Mo. Ct. App. 1998)

5.  the value of new stock issued as part of annual compensation package–even if it is restricted stock that vests over a time span of years, at least where the amount that vests each year may be averaged or there is some other reasonable method for considering past, present, and anticipated restricted stock earnings–pp. 7-8 of Heckman slip opinion

6.  the employee’s sale of restricted stock issued by company to employee as part of compensation package may be treated as dividends and included in gross income–p. 8 of Heckman

7.  company stock purchased with funds which would otherwise have been received as compensation is included–p. 9 of Heckman

 

Kurt H. King

Law Office of Kurt H. King, 20 E. Franklin, Liberty, Clay County, Missouri 64068

816.781.6000

Family Law–Dissolution of Marriage, Modification, Paternity–Child Custody, Support, Visitation

Personal Injury, Workers’ Compensation, Chapter 7 Bankruptcy, General Matters

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