California Family Code § 4058 is used to determine the income available for child support. Under the code, annual gross income of each parent means income from whatever source derived, except for those specifically excluded by the code, and includes, but is not limited to:
- trust income
- workers’ compensation benefits
- unemployment insurance benefits
- disability insurance benefits
- social security benefits, and
- spousal support actually received from a person not a party to the proceeding…
Income from the proprietorship of a business, such as gross receipts from the business reduced by expenditures required for the operation of the business is also considered available income under the code. In the discretion of the court, employee benefits or self-employment benefits could also be included, the court needing to consider a) the benefit to the employee, b) any corresponding reduction in living expenses, and other relevant facts. It is important to understand that the court may also, in its discretion, consider the earning capacity of a parent in lieu of the parent’s income, consistent with the best interests of the children.