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How does rental income work when calculating CS?

bebe11bebe11 member
in Blended Families

If I receive rents on a rental property (checks are made out to me and deposited into my personal account) does my H need to claim this as income?

 

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Re: How does rental income work when calculating CS?

  • sweetie0228sweetie0228 member

    Are you in a state that calculates household income or just bioparent income?

    Do you own the rental properties in your name only or are they jointly owned?

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  • CFjo2010CFjo2010 member
    It depends on who's name is on Title for the house.  If it's in your name only, then you can argue the property is your sole and separate property.  CA doesn't do "household income", unless you DH is deliberately under-earning to avoid paying CS.  For instance, my income and my IRA doesn't get factored in when DH reviews his CS.

    If the Title is in both of your names, double check with an attorney.  I'm pretty sure it can be written up so that only 1/2 the rental income can count as DH's (because the other 1/2 would be yours and you're not legally obligated to fund his CS).  Also, try running the numbers through the state guideline calculator.  I don't believe it's used as flat income, because then YH would be able to get a modification if/when the house is vacant, KWIM?  I'm pretty sure only a percentage is used.
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  • bebe11bebe11 member
    I despise that calculator website!  The title is in both our names, but I collect all the rent, pay the bills...etc (we keep seperate bank accounts).  I just need to get all our financial info together for when H has to submit it for the new CS re-calculation.  It just sucks because at the end of the day we are lucky if we break even after paying the mortgage, taxes, HOA, insurnace, repairs... so to put in that we collect an extra $$ for rental income doesn't seem fair.

     

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  • CFjo2010CFjo2010 member
    I feel ya.  And I'm really not sure how it works.  I remember a case I handled several years ago where the XH was able to prove that the rent barely covered the mortgage and he was actually losing money off of it and the Judge didn't order the rental income considered.  I think it just comes down to whether or not the house is actually making any money.  Get a free consultation and double check with an attorney just in case.
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  • JessH1474JessH1474 member

    I would say that it would be counted considering both of your names are on the title, but maybe at only 50% considering you are legally entitled to the other 50%.  I am a paralegal but we only do bankrupty law and I know for that purpose, it's counted 100% BUT the mortgage and other housing expenses are deducted as well.  My DH is also going through a child support modification right now, so I know how stressful that is having to gather all those documents.  If you don't have an atty, try posting this question on www.avvo.com..  It's really helpful and I've used the site for several questions throughout our process as well.   Depending on the amount of rental income received, it could make a big difference in your H's case if it's counted when it shouldn't be or not when it should have been. 

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  • Banana44Banana44 member
    I own a 2nd home and rent it.

    The only thing about your 2nd home that matters is what you claim on taxes.  Our rental property is a loss as far as taxes go (after expenses - mortgage, bills, repairs, cleaning person, etc).

    Since we don't claim any gains - nothing needs to be mentioned at CS.  CS is based off of your husbands income and a loss is not income :)


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