Mortgage Payments Can be Included as Income Available for Support

Mortgage Payments

Mortgage Payments Can be Included as Income Available for Support

One of the issues resolved in In re Marriage of Deluca was the issue of whether or not mortgage payments made towards property should be deducted from the owner’s income as an expense or included in the owner’s compensation as proceeds available for support.

The parties were married for 15 years. The husband owned several pieces of property that he rented to third parties and were a source of income for the family. The wife filed for dissolution and requested spousal support based on the income available from all the rental payments.

The trial court ordered spousal support to be based on all of the income of the husband stating that generally mortgage payments are not deducted from income. The court found that the husband’s income totaled $25,000 per month from all sources of income. The trial court did not deduct any amount the husband paid towards the mortgages. The husband appealed that portion of the order.

The Fourth Appellate District Court agreed with the husband to some extent. It stated that generally mortgage payments are not deductible from income. However, when mortgage payments are needed to maintain business operations, then the trial court should have the discretion to deduct mortgage payments from income by analyzing whether the payments are unreasonable, if the mortgage is a refinance or a line of equity, or if the mortgage was acquired to decrease income available for support.

If you need legal advice and are looking for a family law lawyer in Orange County to address a dissolution issue such as spousal support or any other divorce matter such as legal separation, annulment, custody, child support, spousal support and/or property division, please consider Treviño Law in your divorce attorney search. We are located in Laguna Hills right off Lake Forest exit to both the 405 and 5 freeway.

Although the posting of this information can be considered free legal advice for a divorce in Orange County, it does not address other factors which may play a significant role in a particular dissolution. Circumstances in your divorce may alter the results in your dissolution.

Please note that this legal advice does not establish a family law attorney-client relationship. This is a legal advertisement for Treviño Law, Inc.

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