Income affects two significant aspects of divorce – child support and alimony. Indiana is particularly stingy when it comes to alimony. When it is awarded at all, the paying spouse's available income is determined in much the same way as it is calculated for child support. The combined total of alimony and child support payments cannot exceed 50 percent of his income.
Indiana's child support calculations use a parent's gross – not net – income, and your income includes money from almost every imaginable source. Indiana considers earned income from employment, as well as Social Security benefits, retirement benefits, capital gains, inheritances and even gifts or prizes you've won. If you have a company car, or your employer contributes to your housing expenses or meals, the state puts this into the pot because it's money you don't have to spend. Judges are permitted to exclude bonuses and overtime under some circumstances. Public assistance and Supplemental Security Income are among the few income sources that are excluded.
If you're self-employed, the state allows you to deduct the costs of doing business from your gross revenues, but only if the costs are reasonable. You can also deduct some of your self-employment tax, the portion of FICA that you would not have to pay if you worked for someone else. You can deduct alimony or child support you pay for another family if you were married before.