An income and expense statement is often used when determining spousal support and/or child support. Both parties will typically need to complete these statements. The income and expense statement will help you and your attorney determine where your money is coming from and where it is going. Having a firm understanding of your monthly income and expenses is essential.
The following items are commonly included in an income and expense statement: Your gross income from all sources. This includes bonuses, commonly worked overtime, shift pay, rental income, and other non-employment income. You will also need to list approximate amounts for the federal, state, and FICA (Social Security and Medicare taxes) that are withheld from your income.
Once the worksheet is completed you will subtotal your accumulated expenses and subtotal your accumulated debt. This will determine your total expenses. The total expenses will be subtracted from your net income which will give you a positive or negative balance. This will determine your monthly cash flow and will help you understand your choices during negotiations. The income and expense statement can be submitted in court when necessary so that the judge will understand your financial picture as well.
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