Opinion ID: 1579630
Heading Depth: 1
Heading Rank: 8

Heading: averaging theresa's income

Text: Theresa next contends the trial court erred by incorrectly determining the amount of her income and concluding that her income had not materially changed. Specifically, Theresa contends that because her income fluctuated between 1999 and 2001, the trial court should have averaged her income from the prior 3 years to establish her average monthly income, rather than relying on her income as determined during the prior modification hearing. Paragraph D of the guidelines defines total monthly income as the income of both parties derived from all sources, except all means-tested public assistance benefits and payments received for children of prior marriages. The fifth comment to worksheet 1 of the guidelines further provides that [i]n the event of substantial fluctuations of annual earnings of either party during the immediate past 3 years, the income may be averaged to determine the percent contribution of each parent.... Because we conclude depreciation must be added back to Theresa's income, based on the evidence in the record, we conclude that Theresa's income did experience significant fluctuations during the 3 years prior to the hearing. Accordingly, upon remand, we instruct the trial court to average Theresa's income from 1999 through 2001, adding back all depreciation deductions and contributions to voluntary retirement accounts.