Do I Have to Report All Income for Child Support Calculations in North Carolina?

Posted by Josh Valentine | Aug 19, 2019

Child support calculations in North Carolina are based primarily on the income of each parent. In making an initial child support order after an absolute divorce or separation, the court will generally require a financial disclosure from each parent. This information, along with other factors, will be used to calculate which parent pays support and the amount of child support payments. Similarly, if one parent requests a child support modification, the court may again require a financial disclosure from each parent.  

Failing to disclose all necessary information can affect the amount of support going to the child. After a contentious divorce, one or both parents may not want to give the other a full accounting of their financial situation. However, hiding financial assets or misrepresenting a financial disclosure form to the court can result in penalties. 

If you have any questions about reporting income and assets for child support calculation in North Carolina or believe the other parent is hiding money, contact North Carolina family law attorneys at Caulder & Valentine Law Firm, PLLC today for assistance.

Child Support Financial Disclosures in North Carolina

Under North Carolina family court rules, each party in a child support action has to provide initial disclosures to the other parties. The disclosures required depend on whether the North Carolina Child Support Guidelines apply, or if there is some deviation from the standard guidelines. Where the child support guidelines apply, disclosures required include: 

  1. Documents reflecting income from any and all sources for the last two years preceding the filing of the claim; 
  2. Income tax returns for the last two years, including W-2, all schedules, and attachments; 
  3. Pay stubs for the last three months; 
  4. Documents reflecting expenses for current childcare and payments made; 
  5. Documents reflecting expenses for current healthcare insurance and payments made;
  6. Documents reflecting expenses for uninsured medical expenses paid; 
  7. Documents reflecting any extraordinary expenses;
  8. Documents regarding any obligation for child support for any children for whom support is not sought; and 
  9. Documents reflecting ownership of stock or stock options. 

Additional documentation may be required where there is a deviation from the North Carolina Child Support Guidelines, there is an unincorporated separation agreement, the guidelines do not apply because of high incomes, or the parent is self-employed. Additional disclosures may include: 

  1. Bank statements for the last six months, including canceled checks, check register, online statements, and evidence of checks paid; 
  2. Credit card statements for the last six months for any credit card for which you are an authorized user; 
  3. List of all financial accounts, including account number, name of the account holder, institution, address and phone number, in which you have or had any interest in the last 12 months; 
  4. Business tax returns for the past two years, including K-1 and all attachments and schedules; 
  5. Business bank statements, including canceled checks, check register, online statements, and evidence of checks paid for the last six months; 
  6. Credit card statements used for business expenses for the last six months for any credit card for which you are an authorized user; and 
  7. Financial Affidavit. 

Failing to Report All Income and Assets

A parent may not want to report all income and assets for calculating child support. This may involve not wanting to report a source of income the other parent does not know about, wanting to keep financial information private, or believing that the other parent is also hiding assets. However, there may be penalties associated with failing to report all assets and income or making misleading statements on a financial affidavit. 

The judge may have a number of options for penalties when one parent is discovered to be hiding assets. Making false statements or failing to report required disclosures can result in contempt of court charges, awarding attorney fees to the other party, or other financial penalties. 

Child Support Representation in Shelby   

At Caulder & Valentine Law Firm, PLLC, we have helped represent parents in child custody hearings and make sure the children get the proper child support. If you have any questions about child support modifications or making financial disclosures for child support calculations in North Carolina, contact us today for a consultation.

About the Author

Josh Valentine

You could say Josh has a God-given ability for sustaining long-term relationships. He and his wife first met in elementary school and went to Gardner Webb University (GWU) together, where they tied for number 1 in their class. Then, they both started law school on the same day of their graduation and got married during their first semester. He has also known his law partner Blake Caulder since Kindergarten. Theirs is the perfect partnership. “He’s the brake; I am the accelerator,” Josh says. Both Josh and his wife attended an innovative program at Charlotte Law School that allowed them to complete law school in two years instead of the typical three. His wife graduated and passed the North Carolina bar at age 20, becoming one of the youngest attorneys in the state. He readily admits she’s smarter than him. Of course, Josh went on to pass the North Carolina State Bar himself and later the South Carolina State Bar. While in school, he was Associate Editor of the Law Review and received accolades like Phi Delta Phi International Legal Honor Society membership, Order of the Crown, Pro Bono Honors, CALI Awards (highest grade). In his career as a lawyer, he has been admitted to the United States Federal Court for the Western District of North Carolina, is a member of the American Association of Premier DUI Attorneys, and completed training for DWI Detection & Standardized Field Sobriety Testing. Josh has also been named to the Top 40 Under 40 for Criminal Defense by The National Trial Lawyers, the Business North Carolina 2019 Legal Elite for Criminal Defense, and the 10 Best Attorneys for Client Satisfaction by the American Institute of Criminal Law Attorneys three years in a row (2016, 2017, and 2018). Community involvement has been important to Josh all his life. In high school, he participated in building a Holocaust museum that has become internationally regarded. He and his wife are actively engaged in animal rescue, which currently means seven cats and two kittens. He served in prison ministry and assisted with fundraiser banquets there, and he provides pro bono and reduced fee legal services to those in need. As if all of that weren’t enough, Josh also mentors high risk youth and helps with his church’s youth group. He participates in other community volunteer projects involving construction, remodeling, drywall, painting, and landscaping. He’s an active student of the Bible and has traveled to Israel, Brazil, and Europe for mission work. No one can say Josh isn’t a well-rounded individual. In his spare time, he likes to play softball, basketball, and tennis, and he can play the piano and trombone. Sometimes on weekends, believe it or not, he enjoys pouring and finishing concrete with friends who own a concrete and grading business. In his law practice, Josh has made it a point to develop positive relationships with officers, clerks, and district attorneys, which has proven invaluable in delivering positive results for his clients. It’s important to him to both listen to his clients and fight for them. Law enforcement officers have important responsibilities to keep our communities safe and uphold the law, but one of the responsibilities of attorneys is to make sure officers do their job correctly. Josh considers it his job to hold them accountable for their actions. Josh is a person of deep faith. He knows that the established order of our universe and strength of America’s Judeo-Christian influenced court system is built on God’s word. His passion to serve each client with innovation, excellence and integrity is a byproduct of his faith. When asked why he became a lawyer, Josh says, “All through my life, I have personally witnessed family members and very close friends endure divorce, child custody battles, bankruptcy, civil lawsuits, and even fraudulent criminal accusations. I both saw and experienced the stress such events can place on an individual, and I realized that everyone, at some point in their life, needs hope, comfort, and encouragement. In each one of those situations, the person who was best situated to provide that vital support was their lawyer. So that’s why I became an attorney. I understand what you are going through, and I’m here to help you. Our office is focused on meeting your needs and guiding you through what may be the most difficult time of your life.” Education: Charlotte School of Law J.D., Magna Cum Laude Class Rank – 21 of 328 Associate Editor of Charlotte School of Law Law Review Certification and Concentration in Employment Law Phi Delta Phi International Legal Honor Society Order of the Crown Pro Bono Honors CALI Awards (Highest Grade)—Lawyering Process I and Contracts I Full Scholarship Gardner-Webb University B.S. in Accounting, Summa Cum Laude Distinguished Senior Student Award – Highest GPA Alpha Sigma Lambda National Honorary Society Bar Admissions: North Carolina State Bar