You need to check on the guidelines for your state as to what is included.  I think that your question here is if money received from a settlement of a lawsuit considered income for purposes of child support payments.  "Income" is often defined in terms of what is taxable under federal tax laws.  How the proceeds are structured determines if it is taxable.  If it is to compensate for lost income then arguably it is taxable. Compensatory damage - physical injury compensation or compensation for emotional distress - are not considered taxable income.  When you say "retirement money" I am unsure what you mean.  Please seek help from some one in your area to determine what is what here.  Good luck.