How Do Courts Calculate Child Support When One Parent Is Self-Employed?

When parents come to me at The Law Office of Aaron Fonseca with questions about child support, one of the first concerns they share is how the courts handle situations where one parent is self-employed. 

I understand why this worries people. Income from self-employment does not always look the same from month to month, and it can be hard for parents to know how the court will evaluate that income. 

As someone who works in family law every day, I have seen how Texas courts approach these cases with a clear structure, even when the earnings are irregular or tied to business operations. In the first part of this discussion, I want to give you a broad sense of how the system works. 

Courts in Texas & Child Support Laws

Edinburg, Texas, courts start from the principle that both parents have a responsibility to support their children. This standard does not change simply because a parent is paid through a business, works as an independent contractor, or earns money less predictably. 

What does change is the method courts use to calculate income. Under Texas family law, a judge will look beyond a simple paycheck. Instead, the court evaluates actual earnings, business expenses, tax documents, and other financial indicators to determine what the parent truly brings home. This process is meant to create fairness for both parents while keeping the child’s financial needs at the center of the decision.

At this stage in the explanation, it becomes more important to address how Texas defines net resources, which is the number the court uses to calculate support. For employed parents, net resources are easier to identify because they reflect regular wages. 

For self-employed parents, however, the court must separate legitimate business expenses from personal deductions, account for fluctuations over time, and watch for situations in which a parent may appear to earn less on paper than they actually do. 

How Texas Defines Net Resources for Self-Employed Parents

The foundation of child support calculations in Texas family law is the concept of net resources. This is not the same as taxable income, nor is it simply the amount a parent claims on their tax return. For someone who is self-employed, net resources include all income produced by their business, minus reasonable and necessary business expenses. What the court wants to know is the real money available after essential operating costs—not deductions taken for convenience, tax strategy, or personal benefit.

When I evaluate a client’s case at The Law Office of Aaron Fonseca, I review tax returns, profit-and-loss statements, bank records, invoices, and any other financial documentation that shows how funds flow through the business. 

Texas courts do the same. They want a clear picture of the parents’ overall financial situation. This includes revenue from self-employment, but it may also include rental income, dividends, bonuses, or any side jobs that contribute to the parent’s resources. 

Because child support is grounded in family law principles that protect children, courts aim to prevent the manipulation of income reporting or the improper use of business deductions to lower support obligations.

It is also important to note that Texas family law gives judges the discretion to adjust income figures when a parent is intentionally underemployed or when a business is structured to hide real earnings. If a court believes a parent is choosing to earn less than they could, or is using the business to shield funds, the judge may assign an income amount that better reflects the parent’s actual earning capacity.

Common Documents Courts Review

To understand how courts piece together an accurate financial picture, it helps to know the documents that matter most. When self-employment is involved, these items often carry significant weight:

• Tax returns for the last several years

• Profit-and-loss statements

• Bank account statements

• 1099 forms

• Records of business expenses and deductions

These records help the court determine consistent income patterns, identify allowable deductions, and review the business’s financial health. As someone who regularly handles these cases within family law, I advise clients to gather these documents early. Strong documentation reduces disputes and helps the court form a fair calculation.

How Texas Applies the Child Support Guidelines

Once the court identifies the net resources, the standard guideline percentages apply. Under Texas family law, the State uses a percentage-based formula that depends on the number of children involved. For example, 20% of net resources is typical for one child, with additional percentages added for more children. These guidelines apply equally to employed and self-employed parents. The difference lies in the initial calculation of net resources, not in the guideline itself.

Because business income can fluctuate, judges often look at income averages taken over a reasonable period. For some people, this may be a few months; for others, a full year or more may be necessary. 

If there are substantial seasonal variations—such as in construction, landscaping, or other seasonal trades—the court may review a longer history to avoid artificially inflating or lowering support.

Reach Out to an Experienced Family Law Attorney Today

As someone who practices family law in Texas every day, I know how stressful child support cases can be when one parent is self-employed. The unpredictable nature of self-employment can leave parents unsure of what the judge will decide. My job at The Law Office of Aaron Fonseca is to help clarify that process. Texas courts follow structured rules that focus on identifying real income, reviewing accurate records, and protecting the child’s financial needs.

Texas family law is designed to produce fair and consistent results, even when income does not come from a traditional paycheck. If you’re dealing with a child support case involving self-employment, clear documentation and a solid understanding of the legal standards can make the process far smoother for everyone involved. I’m proud to serve Edinburg, Texas, and the surrounding areas of McAllen, Mission, and the Rio Grande Valley. Call today.