How Child Support Works for Self-Employed Parents in Michigan

Determining the proper child support amount is always challenging.

There are additional challenges in calculating child support for self-employed parents in Michigan because their income can fluctuate significantly from month to month or year to year, and the state’s child support formulas rely on fixed amounts.

How is Child Support Calculated for Self-Employed Parents in Michigan?

Here is how family court judges calculate child support for self-employed parents in Michigan, based on the state’s 2025 Child Support Formula Manual and its supplementary materials:

• Determine each parent’s income – The court starts by calculating both parents’ net income, which includes all their earnings minus allowed deductions.
• Identify the number of children – The number of children the parents share helps determine their base support obligations.
• Use the General Care Equation – Michigan applies a formula using the parents’ combined income and a support table to calculate a base amount for child support payments.
• Adjust for parenting time – The court reduces or increases a parent’s obligation based on how many overnight visits the child spends in each household.
• Include medical and childcare costs – The judge will account for the child’s health care expenses, insurance premiums, and childcare, then divide those costs between the parents.
• Apply relevant credits or benefits – Judges also factor in any government benefits the parents receive for themselves or on behalf of their children.
• Consider deviations – Finally, the court may adjust the formula amount if applying it strictly would result in an unfair outcome (such as putting one parent in poverty) before issuing a child support order.

Determining Income for Self-Employed Parents for Child Support

Determining how much child support a parent owes depends on their net income. The incomes of many self-employed parents fluctuate weekly or monthly because they work contract jobs or run their own businesses.

Here are some of the factors courts look at to figure out a self-employed parent’s net income for child support:

• Reduced or deferred income – This happens when a self-employed parent pays themselves less or delays taking income, such as holding back bonuses or leaving profits in the business, to make it appear they earn less than they actually do. The courts scrutinize these situations closely because self-employed individuals often control their own compensation.
• Non-Cash Perks – The personal use of business property (e.g., housing, vehicles, meals) can be considered income if it reduces a parent’s personal expenses.
• Tax Deductions – Certain business deductions (like depreciation, home office costs, travel, or vehicle maintenance) are often added back into income because they don’t necessarily reduce a self-employed parent’s ability to pay support.
• Adjusted Profits – Courts may average a self-employed parent’s earnings over several years and examine whether profits were distributed or withheld without a valid business reason.
• Gifts and Irregular Income – If the parent regularly receives financial assistance from friends, relatives, or others, those contributions may be considered income if they reduce the parent’s living expenses.

Challenges Self-Employed Parents Face with Fluctuating Income

Self-employed parents often face fluctuating incomes. Seasonal work, shifting client demand, or unexpected business expenses can cause wide swings in a parent’s earnings. This unpredictability can make it hard to calculate a stable child support amount.

Contact Our Michigan Child Support Attorneys Today

Self-employed parents in Michigan face unusual challenges regarding child support.

Alward Fisher can protect your rights while looking out for your child’s needs. Whether you need help proving self-employed income for child support or suspect your spouse has manipulated their finances to avoid fulfilling their child support obligation, we can investigate to uncover the truth and take appropriate legal action.

Call now or complete our contact form to schedule a consultation with our Michigan family law attorneys.