Are Capital Gains income?

Most people know that child support payments are calculated based on income. But what does “income” include?

Specifically, should Capital Gains on the sale of a property be included?

The short answer is that in most cases the non-recurring Capital Gain should not form part of your income for the purposes of calculating child support. The analysis starts by considering what the total income is and then adjusting the income to exclude the Capital Gain when appropriate to do so.

For example, if you bought and sold properties regularly and had Capital Income every year, then you might find that the Court might consider the Capital Gain a regular part of a fluctuating income. In that case, I would expect the Court to average your income over the course of three years.