Opinion ID: 2137054
Heading Depth: 1
Heading Rank: 3

Heading: Parent's Net Income.

Text: In determining child support under the guidelines, the court must determine both the custodial and noncustodial parent's net monthly income. Net monthly income is defined in the guidelines to be the gross monthly income less specifically enumerated deductions. Parties in a dissolution proceeding must disclose their financial status. Iowa Code § 598.13. We have prescribed a financial status form to be filed by both parties prior to dissolution hearings involving alimony or child support. Iowa Ct.R. 205. This form requires the affiant to show the current gross income source and amount, an explanation of the deductions in arriving at the net income amount, and the amount of net income. Although not designed for use in determining net income for guidelines purposes, it can be so used. Both parties filed the form. Susan is an employee with a gross monthly income of $960 and a net income of $720. Haydn is a self-employed doctor of chiropractic. Haydn testified that he had sold his practice in Jefferson City, Missouri, on contract, to a relative for $250,000 with possession given on January 1, 1990. He stated the unpaid balance on the contract was approximately $150,000 and that at the time of the hearing he was attempting to buy back into the practice. His affidavit reported as his total monthly income the sum of $2074, the amount he receives from the sale of his practice. Haydn furnished evidence that his annual net taxable income from 1982 through 1988 ranged from a low of $16,951 in 1985 to a high of $176,442 in 1988. The average net income for the seven year period was $57,214. Although the modification hearing was held in August of 1990, Haydn did not provide 1989 income tax information. He did testify that his net taxable income from the practice for 1989 was a little more than his reported 1988 net income. The guideline charts are designed to determine the amount of child support based upon the number of children and the current net monthly income of the custodial and noncustodial parent. Prior to the 1989 guidelines, the court was required to consider statutory factors when fixing child support. Iowa Code § 598.21(4), (8) (1987). With the adoption of guidelines, the court is no longer required to consider the statutory factors. 1989 Iowa Acts ch. 166, § 6; 1990 Acts ch. 1224, § 45. However, the factors may be considered when the guidelines require judicial discretion or if the guidelines award would be unjustified or inappropriate. The district court used Haydn's 1988 net income as the basis for establishing his earning capacity. The court then treated this amount as income for computation of child support under the 1989 guidelines. The court must determine the parent's current monthly income from the most reliable evidence presented. This often requires the court to carefully consider all of the circumstances relating to the parent's income. Where the parent's income is subject to substantial fluctuations, it may be necessary to average the income over a reasonable period when determining the current monthly income. Haydn's income from his practice fluctuates monthly and annually. Although he was unemployed at the time of the modification hearing, this was a temporary condition. Under these circumstances the court may determine current monthly income based upon his income prior to his temporary unemployment.