In-Kind Compensation and the Illinois Child Support Formula

 Posted on November 20, 2025 in Family Law

Thanks to the rise in alternative work arrangements, a decline in union membership, and shifts in the labor market driven by globalization and technology, there are far fewer "traditional" wage earners. Some parents may receive housing, a company car, food stipends, business travel perks, or other non-cash benefits as part of their overall compensation.

When it comes to child support, these forms of in-kind compensation can significantly affect child support calculations under the Illinois Income Shares model. However, not all perks qualify as "income," and courts must determine whether an in-kind benefit is substantial, regular, and economically valuable to the paying parent.

Both parents must understand how Illinois treats in-kind pay when determining child support. If you or your spouse receives "non-traditional" forms of compensation, you must ensure you have a knowledgeable Wheaton, IL child support attorney who understands how in-kind compensation is treated.

What Are the Key Contributing Factors to the Decline of Traditional Wage Earners?

Many people today opt for non-traditional work, such as freelancing, gig work, and independent contracting. While these jobs offer flexibility, they may lack the typical benefits, stability, and protections found in more traditional jobs. The sharp drop in union membership over the past few decades has contributed to wage inequality and eroded traditional protections for many workers.

Technology has made some traditional jobs obsolete, reducing the demand for certain skills. Jobs like routine manual and service jobs have seen a significant decline in employment numbers. Globalization has shifted power away from workers, changing employment structures and leading to a decline in stable, long-term jobs in the United States.

Finally, the real value of the federal minimum wage has steadily declined since the 1970s. While some states have higher minimum wages, the federal minimum wage remains at $7.25, making it much harder for workers to achieve a stable, traditional income.

What is the Definition of "Income" Under the Illinois Income Shares Model?

Under 750 ILCS 5/505, the following are considered "income" for the purposes of determining child support under the Illinois Income Shares Model:

• Wages and earnings
• Bonuses and overtime
• Income from investments, interest, and capital gains
• Government benefits, including unemployment, disability, Social Security benefits, and veterans’ benefits
• Pensions and trusts
• Contractual agreement income
• Workers’ compensation
• Military fringe benefits
• Gifts and gambling winnings
• Spousal support received from someone not included in the current child support proceedings
• A new spouse’s income, to the extent it lowers the parent’s expenses

What Counts as In-Kind Compensation When Determining Child Support?

In addition to the types of income listed above, some forms of in-kind compensation may be counted as income, such as:

• Travel reimbursements
• Cell phones provided by the employer
• Tuition, training, or credentialing benefits
• Internet
• Tech stipends
• Meal allowances
• Company cars
• Fuel
• Insurance
• Employer-provided housing

These may be considered income for child support calculations if they are part of the parent’s compensation. The court will consider the regularity of the benefit, whether the benefit offsets personal living expenses, and whether the benefit is provided in exchange for work. A benefit that is purely job-related, such as equipment required solely for work or a reimbursed business expense, generally does not count as income.

The value of these perks may be added to the parent’s gross income, which is then used to calculate the child support obligation based on the parent’s income share.

Contact a DuPage, IL Family Law Attorney

If your child support case involves in-kind compensation or disputes over how non-cash income should be calculated, you can benefit from speaking to a Wheaton, IL child support lawyer from Mirabella, Kincaid, Frederick & Mirabella, LLC. MKFM Law serves family law clients from our offices in DuPage, Kane, and DeKalb Counties. To schedule your initial attorney meeting, call 630-665-7300.