High-Income Child Support, S-Corporation Distributions, and Imputation
A 2022 final judgment ordered father to pay $2,800 per month child support for two children, now 8 and 11, based on incomes of $180,000 for father and $70,000 for mother and 50/50 timesharing. In 2025 mother petitions for an increase. Father is now a law firm partner; his W-2 is $250,000, and he receives S-corporation distributions of $200,000, some retained by the firm for capital. Mother left a $90,000 job in 2024 to open a bakery; she reports $30,000 net and works 30 hours per week. Without court order, the parents have been exercising a 60/40 schedule in father's favor for a year. Mother pays $400 monthly aftercare; father pays $300 monthly for the children's health insurance. Mother's new spouse earns $200,000. Father asks the court to impute $90,000 to mother, use his $250,000 W-2 only, and apply the 60/40 schedule; mother asks for retroactive support and fees.
1. How should the court determine father's income for child support, including the S-corporation distributions?
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Start with section 61.30(2)(a): gross income includes salary, bonuses, commissions, dividends, and distributions. Father's W-2 is not the ceiling. S-corporation distributions that are available to him are income; capital retained for ordinary business needs, depreciation, and legitimate expenses may be excluded, but the court needs the K-1s, business tax returns, and evidence of distributions. If combined net income exceeds $10,000 per month, the guidelines table tops out; the court may award above the guidelines but must make written findings on the children's needs and the parties' incomes. The court should average fluctuating income over several years and exclude only verified business expenses. Father's law-firm capital account is not automatically income, but payments to him are.
2. Should the court impute income to mother at $90,000? What findings are needed?
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Imputation under section 61.30(2)(b) requires a finding that mother is voluntarily unemployed or underemployed and consideration of her recent work history, qualifications, prevailing earnings, and the local market. Leaving a $90,000 job to start a bakery and working 30 hours is suspicious, but a start-up may justify a temporary reduction. The court should not automatically impute $90,000; it should determine whether the bakery is a good-faith career change and whether 30 hours is full-time for that business. If underemployment is found, impute at least the $90,000 capacity, with a reasonable phase-in. The burden is on father. Mother's new spouse's $200,000 is not included in her gross income for child support; it may affect her expenses but not the guidelines.
3. How should timesharing and retroactivity affect the support calculation, and what role does the new spouse's income play?
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The existing order controls until modified, so the 60/40 informal schedule does not automatically change support; father should file a supplemental petition. If the court modifies timesharing, it must find a substantial change and best interests under section 61.13, then use the actual overnights in the guidelines. Retroactive support runs to the date of service of the petition, not the date mother first asked. The court should calculate both parents' net incomes, add aftercare and health insurance, apply the guidelines, and decide whether the 60/40 arrangement or 50/50 is the legal schedule. Fees under section 61.16 depend on need and ability; husband's higher income favors a fee award to mother if she lacks ability. The new spouse's income is not part of the child support calculation.