Boston, MA family law attorney Terri Partridge talks how a parent’s ability to pay alimony or child support is determined in a MA divorce. She explains that determining an individual’s income for purposes of child support and alimony can be complex. For W-2 employees, the calculation is generally straightforward; however, under the new Cavanaugh decision in Massachusetts, all perks and benefits associated with employment must also be considered and quantified for both child support and alimony purposes.

For self-employed individuals or business owners who set their own salaries, the process becomes more challenging. Often, an expert is retained on behalf of the client to determine an appropriate income figure, particularly when the individual may report a low salary while retaining substantial profits within the business. In such cases, it is essential to evaluate the income stream in conjunction with the overall value of the business to ensure a fair and accurate assessment of the individual’s earning capacity.