Opinion ID: 2157414
Heading Depth: 1
Heading Rank: 3

Heading: Monthly Child Support

Text: A child support obligation is required to be set in a paternity action pursuant to the Uniform Child Support Guidelines. See Iowa Code § 600B.25(1) (2001) (directing support to be set pursuant to section 598.21(4)); id. § 598.21(4) (directing the supreme court to maintain uniform child support guidelines). A rebuttable presumption exists that the guidelines determine the correct amount of the monthly support obligation. Id. § 598.21(4)( a ). Additionally, the court may order a back child support obligation. Id. § 600B.25(1). The guidelines establish the amount of child support largely by determining the net monthly income of each parent derived from their gross monthly income. See Iowa Ct. R. 9.26 (setting forth the guidelines); id. R. 9.5 (defining net monthly income). Except in cases involving high incomes, and some other instances supporting a deviation from the guidelines, a chart is used to determine the amount of monthly child support based upon a predetermined percent of the parents' net monthly income. Id. R. 9.2. Of course, the guidelines work to meet the goal of establishing adequate support for a child only if the correct figures are used to arrive at the net monthly income. Net monthly income under the guidelines is determined by first establishing gross income. See id. R. 9.5 (stating net monthly income is gross monthly income minus applicable deductions). The guidelines do not define gross income, but we have on a number of occasions included such items as overtime income, incentive pay, and bonuses as gross income. See State ex rel. Hammons v. Burge, 503 N.W.2d 413, 415 (Iowa 1993) (incentive pay); In re Marriage of Brown, 487 N.W.2d 331, 333 (Iowa 1992) (overtime); In re Marriage of Lalone, 469 N.W.2d 695, 698 (Iowa 1991) (bonus). In each instance, the key to including the item of extra income primarily focused on whether it was reasonably expected to be received in the future. See Seymour v. Hunter, 603 N.W.2d 625, 626 (Iowa 1999) (Income, for purposes of guidelines, need not be guaranteed. History over recent years is the best test of whether such a payment is expected or speculative.). If extra income is uncertain or speculative, or if it is an anomaly, it is excluded. In re Marriage of Brown, 487 N.W.2d at 333. If it is reasonably expected to be received, then it should be included in gross monthly income by averaging the extra income over a reasonable period of time so the amount included fairly reflects the amount that will be received. See Seymour, 603 N.W.2d at 626 ([T]he court should consider and average them as earnings over recent years and decide whether the receipt of an annual payment should be reasonably expected.). The same approach should be applied to extra income in the form of commissions in this case. Joseph argues that Kristy failed to prove the commissions were reasonably expected to be received. He points out that Kristy only presented evidence of extra income for one year, with no circumstances concerning any certain future expectation. Nevertheless, once evidence of extra income has been introduced, we think the burden is on the recipient of the income to establish that it should be excluded from gross income as uncertain and speculative. In In re Marriage of Brown, we said that overtime wages are included in gross income unless circumstances show the wages are an anomaly or speculative. See In re Marriage of Brown, 487 N.W.2d at 333 (Overtime wages are within the definition of gross income to be used in calculating net monthly income for child support purposes. This conclusion does not necessarily mean, however, that a court must steadfastly adhere to the appropriate child support amount as determined by the guidelines using overtime pay if the amount results in injustice between the parties.... [I]n circumstances where overtime pay appears to be an anomaly or is uncertain or speculative, a deviation from the child support guidelines may be appropriate. (Citation omitted; emphasis added.)). The recipient of extra income is in the best position to present the underlying circumstances to the court, which makes it fair to place the burden on the recipient to show the extra income should be excluded or considered in some other manner. See 2 John W. Strong et al., McCormick on Evidence § 337, at 413 (5th ed. 1999). Thus, we must determine whether Joseph carried his burden to prove his commission was anomalous, uncertain, or speculative. Joseph did not present any evidence of how long he has been working at the transmission business, how many abandoned cars he has sold while working there, or how often people abandoned cars that were repaired and sold. He did not introduce any tax returns or records to show commissions in years other than 2003. There is simply no evidence from which we can decide whether the receipt of [a commission] should be reasonably expected. Seymour, 603 N.W.2d at 626. The only testimony in the record on the issue is: Q. There is no assurance you are going to make $29,000 this coming year? A. No. Q. The most you can expect from your regular job is $25,000? Is that correct? A. Yes. This testimony, standing alone, is insufficient. Cf. In re Marriage of Schriner, 695 N.W.2d 493, 501 (Iowa 2005) (finding alimony payor's testimony that his continued receipt of overtime was uncertain was insufficient to exclude overtime pay from the calculation of the amount payable). The district court included the commission in Joseph's income in calculating child support, so it apparently did not find convincing his testimony that his continued receipt of commission was speculative. Cf. id. (noting district court must have discredited payor's testimony that overtime income was uncertain because it included it in total income). We give weight to the district court's findings of fact, especially with regard to credibility of witnesses. Id. (citing Geisinger v. Geisinger, 202 N.W.2d 44, 46 (Iowa 1972)). While [Joseph's commission] may in fact decrease or cease in the future, the fact is that at the time of trial, he was [earning commission], and he presented no evidence that he was unable to continue. Thus, the [commission] was not uncertain or speculative, and the district court properly considered it in setting the amount of [child support]. Id. (citation omitted). Joseph is of course free to bring a modification action, in which he can present evidence regarding his commission, to attempt to lower his child support obligation. Cf. id. However, on the present record, we must decline to modify the district court's child support award.