8 income streams courts count towards your spousal support order

When you think about spousal support, your first instinct may be to focus only on your paycheck. In Massachusetts, however, courts look well beyond your base salary. Your full financial picture, including multiple income streams, factors into every alimony decision. Thus, knowing exactly what counts can help you feel more confident and prepared as you work through the divorce process.

How Massachusetts courts calculate alimony

Massachusetts law uses gross income as the starting point for spousal support calculations. In general, Massachusetts law caps alimony payments at 30% to 35% of the difference between both spouses’ gross incomes. This means the income gap between you and your spouse directly shapes the final support amount. This is why understanding how this formula works can help you set realistic expectations before your case reaches court.

Eight income streams courts count toward support?

Now that you understand how the formula works, the next step is knowing exactly what goes into your gross income total. In fact, courts cast a wide net when reviewing finances and your income may include more than you expect.

Here are the eight income streams Massachusetts courts commonly count toward spousal support:

• Wages and salaries: Courts include your base pay, overtime and shift differentials from regular employment.
• Bonuses and commissions: Recurring or predictable performance bonuses and commission-based earnings count toward your total.
• Self-employment and business income: If you run a business or work as an independent contractor, courts factor in your net earnings.
• Severance and retirement benefits: Severance packages, pensions and 401(k) disbursements all apply to your gross income calculation.
• Unemployment benefits: Temporary state or federal financial assistance counts as part of your income.
• Disability payments: Courts include both short-term and long-term disability benefits in the calculation.
• Workers’ compensation: Financial awards you receive for workplace injuries factor into your gross income as well.
• Investment and trust distributions: Courts also count recurring returns such as dividends and interest toward your gross income total.

Each of these sources adds to the gross income total that courts use to determine alimony. With so many streams in play, you need to take a full look at your finances before your case moves forward.

Understand what your income means for you

Now that you know which income streams courts consider, you have a clearer picture of what your financial profile looks like in the eyes of the law. Every income source you and your spouse have plays a role in shaping the final support outcome. Thus, the more you know about your full financial picture, the better you can protect your future as you go through your divorce.