Legal Question in Family Law in California
In calculating child support payments within San Diego, CA, can the equity in my primary residence and rental income from a home I rent out be counted towards calculating child support? I have some equity in my primary residence and almost no equity in my rental. The home I rent out has a negative cash flow since my mortgage is more than the rent I receive. Will the rental income be cancelled out by the mortgage I pay on the rental or will the rent I receive be added towards my work salary?
1 Answer from Attorneys
Except in rare circumstances, assets, such as equity in property, are not used in child support calculations at all. Child support is an income based calculation, not asset based (with rare exceptions, such as for extra high net worth individuals who live off their assets). Rental income is considered but it is net, not gross. So if you have a net negative cash-flow, it will not be added to your work income. In fact, if you want to fight about it, you can claim the net rental loss as a deduction against your work income when arriving at your child support income. Sometimes that's allowed and sometimes it's disallowed.
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