Parents in New Jersey must follow clear rules when calculating child support. The court looks at both parents’ income and considers what is fair for the child. Some types of income, like regular paychecks, are easy to include, but other types, such as gifts, bonuses, and stock options, can be more complicated.
Gifts and bonuses typically count as income
New Jersey courts include almost any money that increases a parent’s income, including gifts and bonuses. If a parent receives regular cash gifts from a relative or another source, the court may count those gifts as income, and the same goes for work bonuses. Whether the bonus comes once a year or several times, the court adds it to the parent’s total income when calculating child support.
However, the court looks at the pattern. If a parent receives a one-time bonus that probably won’t happen again, the court might not include it in future support payments. If the bonus happens regularly or the parent gets it every year, the court treats it as part of regular income.
Stock options may count for child support
If a parent receives stock options through work, the court can include their value as income because the court wants to know how much money the parent actually gains. If the parent exercises the stock options and makes money, that money counts as income. If the options just sit there and don’t create any profit, they may not count.
The court also looks at whether the stock options are part of a regular compensation plan. If the options repeat each year or come with performance goals, the court may include them when calculating support. If they come as a one-time reward, the court might handle them differently.
When courts include all sources of income, they make sure the child gets the support they need. Parents should understand how extra money, like gifts or bonuses, can affect their child support amount. Knowing what counts as income helps parents prepare a strong case when dealing with child support issues during divorce.