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How can in-kind compensation relate to child support?

On Behalf of | Nov 10, 2021 | Child Support |

You probably know that your spouse’s ability to pay you child support will depend on how much your spouse earns in income. However, many people receive their compensation in forms other than cash or a paycheck. Some employers give their workers in-kind compensation.

If you have never heard of this kind of compensation, it may be helpful to understand how it works. If your spouse receives in-kind benefits, you might be eligible for greater child support and spousal support.

Defining in-kind compensation

According to the University of Louisville, employers can give their workers in-kind compensation in many different ways. For example, an employer could give your spouse a residence, perhaps a house or some other lodging. Your spouse may also receive food, clothes or services. Since in-kind compensation amounts to a form of payment, it is subject to income taxes as well as Social Security and Medicare taxes.

In addition to the private sector, people who serve in the military may receive in-kind compensation through housing and meals. So if you have a military spouse, he or she may get some form of in-kind benefits.

In-kind compensation and child support

A judge may consider many kinds of assets when determining child support. It is unlikely in-kind compensation will be an exception, so your spouse should reveal in-kind benefits as part of listing assets and income. As a result, you might receive a higher support payment in the final settlement.

If your spouse has not disclosed some in-kind compensation, it may not be on purpose. Some people do not equate receiving housing or food with getting a salary. Still, some spouses do try to hide assets, so be aware of any efforts to stonewall information you should have to determine your spousal and child support.