How Self-Employment Fluctuating Earnings Affects Child Support

 Posted on August 31, 2025 in Family Law

Parents whose salaries are the same from month to month are likely to have little difficulty determining child support amounts during a divorce. The state of Illinois provides a child support estimator, which allows parents to input their parenting times, income, health insurance, spousal support, and extraordinary expenses and get an approximate child support amount.

However, some parents may be self-employed or engage in "gig" work, which can make their monthly income fluctuate substantially. Even parents who have a steady "main" job may engage in gig work on the side to make extra money. In fact, more than 36 percent (57 million) of Americans have a gig work arrangement either as their primary or secondary job. Another 16.5 million Americans are self-employed.

This can complicate the determination of child support.  The statutes involving how fluctuating earnings and self-employment are treated for the purpose of determining child support can be found at 750 ILCS 5/505(a)(3.1)(A)–(B), (3.2a)–(3.2b), (3.4), and (a)(1.5). If you are worried about how child support will be determined based on self-employment or gig work, speaking to a Wheaton, IL family law attorney can help you get the answers you need.

What Does "Income" Really Mean When You Are Self-Employed in Illinois?

Although the basic formula for self-employed income is: business income = gross receipts minus ordinary and necessary expenses, the court can exclude any inappropriate or excessive expenses if it chooses. If in-kind benefits (reimbursed meals, free housing, or a company car) significantly reduce personal living costs, they may be counted as income.

How Do Variable Incomes Work for Child Support?

Income averaging may be used if a parent’s income fluctuates significantly from year to year. Courts may look at several years of tax returns as a means of setting a fair current income amount for the purpose of determining child support. Suppose income is uncertain in source, timing, or amount (usual for "gig" work). In that case, the courts may order a specific dollar base plus a percentage of variable income and include provisions for the enforcement of timely child support payment.

What Documents May Be Necessary for a Self-Employed Parent?

A self-employed parent will likely be asked to produce any of the following applicable documents:

• Year-to-date profit and loss statements

• General ledger

• Bank Statements

• 1099s

• 2-3 years of 1040 tax returns with Schedules C/E

• K-1s for S-corporations or partnerships

• Proof of in-kind benefits

• Depreciation schedules

• Mileage logs

• Quarterly estimated tax vouchers

In some cases, personal expenses run through the business, such as personal travel, phone, or meals, may be added back to income. Parents who are self-employed and pay child support must keep "clean" books, making sure to separate personal expenses from business expenses, and should expect scrutiny from the court when determining child support.

Recipients of child support from a self-employed ex should request records annually, watch for lifestyle inconsistencies with reported income, and require timely disclosures. If the paying parent has a really bad business year, he or she can petition for a modification of child support when there has been a substantial change to income.

Contact a DuPage County, IL Child Support Lawyer

If you or your spouse is self-employed or a gig worker, determining child support will be much more difficult. It can be beneficial to have a legal advocate by your side who understands Illinois laws regarding self-employment and child support.

An experienced Wheaton, IL family law attorney from Mirabella, Kincaid, Frederick & Mirabella, LLC can guide you through the process in the easiest way possible, ensuring the child support amount is fair.  MKFM Law serves family law clients at their offices in Kane County, DuPage County, and DeKalb County. To schedule your initial attorney meeting, call 630-665-7300.