my income fluctuates each year because of stock trading, how it will affect the child support

[jonathan94112]

What is the name of your state? California

I also live in California and my base income is stable vs. my investment income fluctuates each year. Last year was first time the child support was initiated and case was created. However the mediator requested 3 year of income and out of 3, my last year was 50k$ higher than that and he initially used base income then changed to higher amount that reflected 50k$ which resulted in about add'l 500$. Is it fair? Because I submitted 3 year as tax return honestly as they requested and hoped at least take average of 3 years if they are asking for 3 year span.
Since my investment income fluctuates wildly, it is very difficult that I have to run to court to make adjustment and I am concerned during the year where income reduces, it will be uphill battle for me, because I heard from sources that DCSS is reluctant to reduce and tough on paying parents. It appears largely true to me regarding the fact how the mediator handling my income when determining child support.

Thanks.,

 

[Junction]

How much was your investment income in the other 2 years?

 

[adjusterjack]

the mediator

Don't you have the option of saying no to the mediator and going before a judge instead?

Have you submitted 2018's figures (documented).

Anyway, $500 per month is $6000 per year. Surely you can spare that for your kids out of the $50,000 extra you made last year?

 

[LdiJ]

Don't you have the option of saying no to the mediator and going before a judge instead?

Have you submitted 2018's figures (documented).

Anyway, $500 per month is $6000 per year. Surely you can spare that for your kids out of the $50,000 extra you made last year?

Except perhaps if that 50k is on paper only. A lot of investment income is on paper only.

 

[adjusterjack]

Except perhaps if that 50k is on paper only. A lot of investment income is on paper only.

True.

But if he paid tax on the $50,000 he would have had to have realized the gain during the year.

 

[LdiJ]

True.

But if he paid tax on the $50,000 he would have had to have realized the gain during the year.

Yes of course he realized the gain. That doesn't mean that he ended up with any actual cash in his pocket that could be spent. Most brokerage accounts buy and sell stocks and often realize huge gains or losses that don't actually result in any cash in someone's pocket.