Texas has guidelines for determining child support amounts. This is generally based on income and assets. However, this formula is not one-size-fits-all. Variables can be factored in.
People whose income might differ from their calculated net worth need to understand deemed income. This can impact both the parent paying support and the one receiving it. In these circumstances, both sides should be prepared for their case. A first step is understanding the specifics of the law.
Deemed income focuses on net resources
Not all assets are producing income. An example could be real estate or collectibles. A person who owns classic coins, art or sports cards will not receive income from that unless they sell it. But it is still an asset. When the court calculates the child support amount, they will look at these items. The ability to pay and child’s needs are paramount. The determination is not limited to the income they derive from work.
Property that can be liquidated while not causing an unreasonable sacrifice to the owner due to the current market could be subject to this law. For example, the value of sports cards can fluctuate. It also depends on what type of cards the person has. Those of significant value could be subject to a deemed income assessment.
Those who are being asked to sell assets as part of deemed income can challenge the order by showing that they are seeking employment to increase their actual income. The court will need to know what the parent does for a living, how much they earned in the past, what types of jobs they have had, how and why their income was diminished, and their job prospects.
Deemed income is just one potential challenge with child support
When there is a family law dispute and child support is at issue, both sides should understand all aspects of the law. Deemed income will be an important part of the case if the circumstances warrant it.
The key with child support is to serve the child’s best interests. Toward that end, the parents need to be protected to ensure a fair resolution is achieved. That could include properties that are not currently producing income.
