EXAMPLES OF WEIGHTED AVERAGE INCOME APPROACH FOR CHILD SUPPORT CALCULATIONS IN ILLINOIS' DIVORCE CASES:
By: Gunnar J. Gitlin
The Gitlin Law Firm, Woodstock, Illinois
© 2005
www.gitlinlawfirm.com
Assuming the Husband's income over the course of the last five years has been:
1. $70,000
2. $80,000
3. $90,000
4. $100,000
5. $110,000.
Based upon a weighted approach, the weighted average is calculated as follows:
1. $70,000 x 1 = $70,000
2. $80,000 x 2 = $160,000
3. $90,000 x 3 = $270,000
4. $100,000 x 4 = $400,000
5. $110,000 x 5 = $550,000
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Total: $1,450,000 /15 = $96,670.
The number fifteen is obtained by adding up the number of years: 5+4+3+2+1.
A four year weighted average based upon the above but excluding the last year would be:
1. $70,000 x 1 = $70,000
2. $80,000 x 2 = $160,000
3. $90,000 x 3 = $270,000
4. $100,000 x 4 = $400,000
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Total: $900,000 /10 = $90,000.
The number ten is obtained by adding up the number of years: 4+3+2+1.
This approach is often used in business evaluation and more recently the appellate court has looked to it approvingly in certain situation in the determination of net income for the purpose of basing child support.
The court has discretion to use either a weighted average income approach in determining child support where income fluctuates significantly or to use a simple average. A weighted average approach should be used where there is a trend, such as increasing income.
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The Gitlin Law Firm
Practice Limited to Family Law
663 East Calhoun Street
Woodstock, IL 60098
815/338-9401
© Copyright 2003, Gitlin Law Firm
edited September 3, 2004