2021 MICHIGAN CHILD SUPPORT FORMULA MANUAL
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(6) Net capital gains are included as income. When attributable to a single event or
year, or when cash may not be immediately available to the parent, consider them
to the extent they can be used to represent income over several years. To the
extent that a party proves that a portion of the capital gain was considered in the
property division of the judgment of divorce between the parties, that portion
should not be included as income.
(7) The standard (basic needs) portion of adoption subsidies for children in the case
under consideration (do not consider the medical needs and intensive rate portion
of the subsidy, nor the family support subsidy as income).
(8) Any money or income due or owed by another individual, source of income,
government, or other legal entity. Income considered should usually meet the
statutory definition found at MCL 552.602(o)
.
2.01(D) Income also includes the market value of perquisites (perks) received as goods,
services, or other noncash benefit for which the parent did not pay, if they reduce
personal expenses, and have significant value or are received regularly.
(1) Common forms of perquisites (perks) or goods and services received in-kind
include, but are not limited to: housing, meals, or room and board, personal use of
a company business vehicle or mileage reimbursement, including use between
home and primary worksite, and other goods or services.
(2) Perquisites (perks) do not include money paid by an employer for benefits like
tuition reimbursement, educational cost reimbursement, uniforms, and health
savings account (HSA) contributions.
2.01(E) Self-Employed Individuals, Business Owners, Executives, and Others
(1) Difficulty in determining income for self-employed individuals, business owners,
and others occurs for several reasons.
(a) These individuals often have types of income and expenses not frequently
encountered when determining income for most people.
(b) Taxation rules, business records, and forms associated with business
ownership and self-employment differ from those that apply to individuals
employed by others. Common business documents reflect policies unrelated
to an obligation to support one’s child.
(c) Due to the control that business owners or executives exercise over the form
and manner of their compensation, a parent, or a parent with the cooperation
of a business owner or executive, may be able to arrange compensation to
reduce the amount visible to others looking for common forms of income.
(2) In order to determine the monies that a parent has available for support, it may be
necessary to examine business tax returns, balance sheets, accounting or banking
records, and other business documents to identify any additional monies a parent
has available for support that were not included as personal income.
(3) Whether organized informally, or as a corporation, a partnership, a sole
proprietorship, or any other arrangement, these considerations apply to all forms