How Much Do They Really Make?

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In Minnesota divorce cases, accurately identifying each party’s income is essential. It affects key issues like child support, spousal maintenance, and parenting time. The law requires a full accounting of all income sources—not just salary, but also bonuses, commissions, self-employment income, dividends, interest, and the appreciation of assets. This broad definition, found in Minn. Stat. § 518A.29, ensures that financial obligations reflect actual ability to pay.

For parties with complex financial situations, such as business owners or independent contractors, income analysis may involve reviewing tax returns, profit-and-loss statements, and claimed business deductions. The goal is to distinguish between legitimate expenses and personal benefits that reduce reported income.

In some cases, income is imputed under Minn. Stat. § 518A.32. This occurs when a party is voluntarily unemployed or underemployed, or if there is a sudden change in income around the time of divorce. The court may base support calculations on earning capacity rather than actual earnings by examining employment history, qualifications, and available job opportunities.

Once gross and net income are understood and reasonable living expenses are considered, the remaining income—discretionary income—can be used to calculate appropriate child support and spousal maintenance obligations. These calculations aim to meet the needs of the other party and any children, while remaining within the paying party’s financial capacity.

Accurate income data also supports informed decisions about parenting time. Courts consider a parent’s availability when crafting custody schedules. If one party works irregular or extended hours, that may affect their ability to exercise certain parenting time arrangements.

Ultimately, precise income attribution promotes fairness and stability. It helps ensure that financial and custody decisions are based on facts, not assumptions or strategic omissions.