Family Law Q&A Series

How is child support calculated when the other parent’s income is unclear or changes a lot? – North Carolina

Short Answer

In North Carolina, child support is usually calculated using the statewide Child Support Guidelines, which start with each parent’s current gross income (or the best evidence of it). When a parent’s income is unclear or varies a lot (such as commissions, bonuses, seasonal work, or self-employment), the court can use documents and other evidence to estimate income, may average irregular income over time, and can sometimes impute income if the parent is intentionally earning less to reduce support. If income later changes in a meaningful, lasting way, either parent can ask the court to modify the order based on changed circumstances.

Understanding the Problem

In North Carolina child support cases, the central question is often: how can child support be set when a parent’s income cannot be confirmed with reliable records or changes frequently from month to month? The problem usually arises when a parent is paid through commissions or bonuses, works seasonal jobs, changes employers often, or runs a business where income is not obvious. The court’s job is to set a monthly support amount that fits the Child Support Guidelines while still reflecting the parents’ ability to pay.

Apply the Law

North Carolina courts generally set child support by applying the presumptive statewide Child Support Guidelines. The Guidelines start with each parent’s gross income (income before typical payroll deductions) and then use the correct worksheet based on the custody schedule. When income is hard to pin down or varies widely, the court still has to identify an income figure to run through the Guidelines, using available evidence and accepted methods such as averaging certain irregular income. In some cases, the court can assign (impute) income to a parent who is voluntarily unemployed or underemployed in bad faith to avoid support.

Key Requirements

  • Usable income information: The court must have enough reliable information to determine each parent’s gross income, even if that means using indirect proof (like bank deposits, business records, or payment history) when paystubs are missing or incomplete.
  • Correct treatment of variable income: Irregular or nonrecurring income (such as bonuses or commissions) may be averaged or prorated so the monthly support amount better reflects real earning patterns.
  • Bad-faith underemployment (imputed income): If a parent is deliberately suppressing income or refusing reasonable work to reduce child support, the court may calculate support based on earning capacity rather than reported income.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because the only stated facts are that a parent wants an appointment about a North Carolina child support case, the outcome will turn on what proof exists of the other parent’s income and whether that income is truly variable or is being hidden. If the other parent has fluctuating pay (for example, commissions), the court commonly looks for a pattern and may use averaging so the Guidelines can be applied using a workable monthly number. If the other parent will not provide records, the case often shifts to using other evidence (tax returns, bank records, business records) and, in the right situation, arguing for imputed income if the court finds bad-faith underemployment.

Process & Timing

  1. Who files: A parent (or, in some cases, the county child support agency in an IV-D case). Where: North Carolina District Court (often filed through the Clerk of Superior Court in the county where venue is proper). What: A child support complaint (to establish) or a motion in the cause (to modify), supported by financial information (commonly pay records and tax returns). When: If a parent wants a different amount based on income changes after an order is entered, the parent typically files as soon as a meaningful change becomes clear.
  2. Income proof step: The parties usually exchange financial information. When income is unclear, attorneys often request tax returns, W-2s/1099s, recent paystubs, bank statements, and (for business owners) profit-and-loss statements and proof of “ordinary and necessary” business expenses used to calculate business income.
  3. Guidelines calculation and order: The court (or, in districts with an expedited process, a child support hearing officer) applies the Guidelines using the income figures it finds. If the court departs from the presumptive Guidelines amount, it must make written findings explaining why and how it reached the final number.

Exceptions & Pitfalls

  • Confusing “gross income” with take-home pay: The Guidelines start with gross income, and income is defined broadly. Missing forms of compensation (commissions, bonuses, business income, certain in-kind benefits) can skew the calculation.
  • Variable income needs a time frame: When income changes a lot, a short snapshot can be misleading. Courts often need a longer view (such as multiple months or prior tax years) to decide whether to average income and what period best reflects current earning capacity.
  • Self-employment and business owners: Business income is not simply “what is left after taxes.” Courts often look at gross receipts minus ordinary and necessary business expenses, and they may reject expenses that appear to shelter income rather than reflect real operating costs.
  • Imputed income requires proof of bad faith: If a parent’s income is low because of a legitimate job loss or health issue, imputation may not apply. Claims of intentional underemployment usually need evidence of earning capacity, work history, job availability, and conduct suggesting deliberate income suppression.
  • Deviation from the Guidelines is not automatic: Even when income is messy, the Guidelines remain the starting point. A party seeking a non-Guidelines number must be prepared to present evidence about the child’s reasonable needs and each parent’s ability to pay, because the court must make specific findings to deviate.

Conclusion

In North Carolina, child support is generally calculated under the statewide Child Support Guidelines using each parent’s gross income and the correct custody worksheet. When a parent’s income is unclear or changes often, the court can rely on tax returns, employment and business records, and may average irregular income so a stable monthly figure can be used in the Guidelines. If a parent is deliberately earning less to avoid support, the court may impute income. The next step is to file a child support action (or a motion to modify) in District Court and provide financial records to support the income number used.

Talk to a Family Law Attorney

If a North Carolina child support case involves unclear income, variable commissions/bonuses, self-employment, or frequent job changes, our firm has experienced attorneys who can help explain the Guidelines, gather the right proof, and map out realistic timelines. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.