Divorce is never easy and having to worry about your finances does not make it any easier. Whether you’re concerned about child support, maintenance, or asset division, one factor plays a crucial role in nearly every part of the process: income. But how exactly is income calculated in an Illinois divorce—and why does it matter so much? At Hayes Law, LLC, we know that understanding how income is determined can make a significant difference in the outcome of your divorce. Here’s what you need to know.
Why Does Income Calculation Matter in an Illinois Divorce?
Income is more than just your paycheck—it’s the foundation of critical financial decisions in a divorce. The court uses income to determine:
- Child Support: Child support is calculated using an “income shares” model, which relies on the combined incomes of both parents to determine how much support a child should receive.
- Maintenance: Maintenance is typically determined by applying each spouse’s net income to the statutory guidelines.
- Equitable division of assets: Illinois follows an equitable distribution model, so the court considers the parties’ earning capacity and financial circumstances when deciding how to allocate property.
An accurate assessment of each party’s income ensures that support payments are fair and that both parties can maintain a reasonable standard of living after divorce. Misreporting or misunderstanding income can lead to unfair outcomes and legal complications down the road. This may include:
- Unfair Support Orders: Misstating income can result in incorrect child support or spousal maintenance, leaving one party overpaying or under-supported.
- Legal Repercussions: Knowingly hiding or misrepresenting income can lead to court sanctions, fines, or even a reopened case.
- Delays and Higher Costs: Disputes over income often require expert analysis and extended court time, increasing stress and legal fees.
- Post-Divorce Conflict: Incorrect income calculations can lead to ongoing legal battles long after the divorce is finalized.
- Damaging Credibility: If a party is caught misrepresenting income, it can destroy their credibility in the eyes of the court and cause them not to be believed in other areas of the case.
For a smoother process and a fair outcome, it’s essential to get income right the first time.
What Is Considered “Income” in an Illinois Divorce?
Under Illinois law, “income” is defined broadly. Illinois courts are not just looking at what someone makes today—they are also trying to assess what financial resources they have access to overall. Whether it’s rental income, investment dividends, or regular financial help from a relative, these resources impact a party’s ability to pay or need for support and are therefore included. The courts consider a wide range of income sources, including:
- Salaries and hourly wages
- Commissions and tips
- Bonuses
- Self-employment income
- Rental income
- Investment dividends and interest
- Retirement income (pensions, 401(k) distributions, etc.)
- Social Security benefits
- Unemployment and disability benefits
- Business profits
- Trust income and other passive income sources
- Gifts from family and friends
In short, if it increases your financial resources, it may be counted as income in your divorce. The main reason is to ensure that child support, maintenance, and the division of assets are based on a party’s true financial capacity, not just what appears on a tax return. Many people have income sources—like bonuses, business perks, or investment returns—that don’t necessarily show up as regular wages but still significantly affect their financial well-being and ability to support themselves. By using a broader definition, courts can create orders that are more equitable and reflective of the parties’ real-life financial circumstances.
What Happens When Income Varies from Year to Year?
Not everyone earns the same amount annually—many people have income that fluctuates due to commissions, bonuses, seasonal work, or variable business profits. In these cases, Illinois courts may average several years of income to create a more accurate picture of a party’s earnings.
For example, if one spouse is a real estate agent whose income swings significantly year to year, the court may average the past 3–5 years of income to attribute a fair annual income to the party.
Income in Divorce vs. Income on Your Tax Return
One common misconception during divorce is assuming that your taxable income is the same as your divorce income. In reality, Illinois family courts take a much broader view of what counts as income when determining support and financial obligations. For instance:
- Pre-tax deductions like health insurance or retirement contributions may still be counted as income.
- Non-taxable income (such as certain disability payments) might still be considered.
- Business owners who deduct expenses for tax purposes might have those deductions scrutinized to determine their “true” income.
In short, the court is more interested in what you actually earn and have access to—not just what’s reported to the IRS.
Contact our Experienced Illinois Divorce Attorneys
Income calculation can make or break your divorce settlement—and getting it right takes experience, precision, and advocacy. At Hayes Law, LLC, our skilled family law attorneys have helped countless clients navigate the complexities of their income. Contact us today to schedule a personal consultation. Let us help you protect your rights and your financial future.
