5 Types Of Additional Income That Can Effect A Divorce Settlement

Divorces can be personally exhausting. Not only are you ending a relationship with a loved one, but you are dealing with inquires on a majority of all your private information. The income of a couple is important for settling divorces, figuring out alimony payments, and setting up child support. As you work with a local divorce attorney, it's important to divulge all of your income, including any side projects or hobbies that earned you money. The following five types of income should be documented on your settlement case because they may have a large impact on the settlement. It's also important not to hold back on this income information, because it could have a negative impact in the future.

Yard Sale Income

As you move on from the relationship, you may consider holding a yard sale to sell off goods and make a little extra money. This commonly occurs if you're relocating from the family home and are hosting a moving sale. The income you make from the yard sale should be a part of the divorce case, especially if it a part of your reported taxes. This is especially true if you're selling items that both you and your spouse used. Examples include kitchen appliances, electronics, or housewares.

The straight up value of the yard sale income will not be the final figure in the case, though. When working with a divorce lawyer, you can calculate different deductions for your effort in the yard sale. This includes the purchase of supplies and the time you put in to hosting the event.

Selling Goods

Similar to yard sales, any income you made from selling goods should be reported to your attorney. A lot of websites offer the ability to sell new and used goods. Anytime you sell items before or after the settlement, that type of income will become a part of the divorce proceedings. With the information, your attorney can determine whether these sales are one-time things, or if they create a consistent flow of income.

For example, if you are constantly reading and then selling used books on websites, the income from the books could be considered a consistent flow. If you sell an old toy one time, then it is likely not considered a consistent flow of income.

Hobby Income

Many divorcing couples have individual hobbies that can generate a lot of income. Just like yard sales, deductions can be made for the hobby, but the income amount will matter in a court case. For example, if you like to fish and sell the fish to local markets, then the annual income can be calculated to determine the full income.

This also applies to other hobbies like crafting. Income will be added in for selling blankets, jewelry, and other crafting goods that you create and sell.

Holiday Incomes

During a spring or summer divorce, it may be hard to focus on incomes that you make during the holiday season. This is why it's a good idea to go through monthly calendars and determine the types of income you make during the whole year. During the holidays, there may be extra ways you're making income. Selling Christmas trees, working a part-time holiday job, or selling custom items like Christmas wreaths are all factors in determining your extra holiday income.

An attorney can help break down these sources of money by using bank statements set around the holiday season.

Social Gathering Incomes

It's not uncommon for people to host house parties where goods are sold. Clothes, novelty gifts, food, and kitchen accessories are just a few of the items featured at these gatherings. While they are a fun social event, they are also a source of income. This makes it important to file and declare during a court case. If you have these parties on a monthly or annual basis, it could have a bigger impact than if you've only had them a single time.

Bring as many receipts and income forms to meetings with your lawyer. It's important to be as open as possible to have the best case results.

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