Husband earned a bonus in addition to his salary. The parties divorced. The child support was to pay 20% of his net income per pay period. Also, at the end of the year, he is to true up his income. He will pay 20% of his entire net income by the end of the year. He will owe any additional money to his mother at the end of each year.
Wife file a petition. She alleged that her father was way behind in paying the required child support to her. She alleged that her father made more income than her father says he made. The trial court ordered Father to pay some additional child support. But, not as much as wife thought he should pay to her. Wife appealed.
The Appellate Court looked at the reasons why the wife thought she should get more child support. One of the issues was a loan father made.
Husband had taken out a mortgage loan to buy a house. The wife maintains that the mortgage loan should be included in his net income for child support purposes.
Rogers’ case states that loans can be treated as part of net income. In that case, the loans were from the father of the party receiving the loan. The loans did not need to be paid back. Therefore, the loans were a gift.
The Appellate Court looked at the nature of loans. Should a parent who takes out tens of thousands of dollars in student loans for graduate school be credited with an equal amount of `income’ for those years?
Should a parent who borrows hundreds of thousands of dollars for a mortgage to buy a house be considered to have that much additional `income’ that year?
Husband owed child support from net income that he earned.
In re Marriage of Baumgartner, No. 1-06-2866.
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