In any Florida divorce, the calculation of child support is intended to be a straightforward, mathematical process governed by statute. The formula, however, is only as accurate as the numbers put into it. When one or both parties are self-employed, determining the correct income figure becomes one of the most complex and contested issues in family law. A recent 2025 Florida appellate decision, Hunter v. Hunter, provides a perfect example of how a simple but fundamental error in this calculation can invalidate an entire child support order.
In the Hunter case, a trial court, after reviewing the parties’ finances, concluded that both the Former Wife and Former Husband had “essentially equal” annual incomes of approximately $60,000. Based on this finding, the court ruled that neither party was entitled to child support. The Former Wife appealed, and the appellate court reversed the decision. The court found that the trial judge’s income finding for the Wife—a self-employed cosmetologist—was not supported by anycompetent, substantial evidence. The record showed the trial court had improperly used the Wife’s gross receipts (the total amount her clients paid her) as her “income,” while completely ignoring her “ordinary and necessary” business expenses (like booth rental, supplies, and licenses). This error, which fundamentally misapplied Florida’s child support statute, required the entire child support calculation to be reversed and sent back for a new hearing. This case is a critical reminder for any self-employed individual in Tampa that presenting your income correctly is essential, and the guidance of an experienced Tampa divorce lawyer is invaluable.
The Most Critical Error: Gross Income vs. Net Income
Florida law is unequivocal: child support and alimony calculations must be based on a party’s net income, not their gross income. The trial court in Hunter failed this basic test. This is not just a minor oversight; it is a fundamental misapplication of the law that constitutes an abuse of discretion.
The reason for this rule is simple common sense. Net income represents the actual, spendable income a person has available to support themselves and their children after mandatory, non-discretionary deductions are paid. Calculating support based on a “gross” figure (especially gross receipts) forces a person to pay support based on “phantom income”—money they never had in their bank account.
This distinction is the cornerstone of every financial proceeding in a Tampa divorce. A judge must begin with a party’s gross income and then subtract a specific, limited list of allowable deductions to arrive at the net income. The failure to perform this step-by-step process, or performing it with incorrect numbers, is one of the most common reasons a final judgment is reversed on appeal.
The “Competent Substantial Evidence” Standard
The Hunter appeal was not just about a simple math mistake. It was about a core legal principle: a judge’s findings of fact must be supported by “competent substantial evidence.” This means the judge’s final order must be based on real, reliable evidence that was properly submitted into the record, such as tax returns, pay stubs, financial affidavits, and expert testimony. A judge cannot simply “pick a number” or “split the difference” if the evidence does not support it.
In Hunter, the Former Wife provided her 2019 tax return as evidence. It showed:
- Gross Receipts: $62,287
- Business Expenses: $21,408
- Gross Income (for tax purposes): $40,879
She also provided other returns and a financial affidavit showing similar, or even lower, income. The appellate court found that the trial judge’s finding of a $60,000 to $70,000 annual income (which translated to a “net” monthly income of $4,904) had no basis in the evidence presented. The judge appeared to have seized on the “gross receipts” number ($62,287) and ignored the $21,408 in legitimate business expenses.
This is a complete failure of the evidentiary standard. The trial court’s conclusion was not supported by the evidence. An experienced Tampa divorce lawyer understands that their primary job at trial is to build a record of “competent substantial evidence” that supports their client’s position and gives the judge a clear, legally-sound path to follow.
The Two-Step Calculation for Self-Employed Spouses
The Hunter case perfectly illustrates the unique challenge of calculating income for a self-employed individual, a common scenario in the Tampa Bay area. For a standard W-2 employee, finding “gross income” is easy—it is the number on their pay stub. For a self-employed cosmetologist, contractor, consultant, or small business owner, the calculation is a mandatory two-step process.
Step 1: From Gross Receipts to “Gross Income”
The first and most critical calculation is to determine the party’s actual gross income, which is not the same as their gross receipts.
The statute defines “business income” as “gross receipts minus ordinary and necessary expenses required to produce income.”
This is where the Hunter trial court failed. It never subtracted the “ordinary and necessary expenses” from the gross receipts. For a self-employed individual in Tampa, these legitimate expenses are the key to an accurate income calculation.
“Ordinary and necessary” expenses typically include:
- Cost of Goods Sold: For a retailer or restaurant.
- Supplies: Such as the dyes, chemicals, and tools for a hairdresser.
- Rent: Booth rent for a salon professional, or office rent for a consultant.
- Utilities: For a business location.
- Tools and Equipment: That are “necessary” to perform the job.
- Marketing and Advertising:
- Professional Licenses and Dues:
- Business-Related Vehicle Expenses: Such as mileage, insurance, and gas used for work purposes.
- Health Insurance Premiums: For the business owner.
This is also where many divorce battles are fought. A skilled Tampa divorce lawyer representing the other spouse will meticulously scrutinize these “expenses.” Are they truly “necessary” for the business, or are they disguised personal expenses?
- Was that “business meal” a client meeting or a personal dinner?
- Is the “home office” deduction legitimate, or is it just a desk in a personal bedroom?
- Are vehicle expenses being improperly claimed for personal commuting?
This is why, for the self-employed, a tax return is just the starting point. A Tampa divorce lawyer for the self-employed spouse must be prepared to document and defend every single business expense as “ordinary and necessary.” Conversely, the attorney for the other spouse will often be looking for commingled funds, personal expenses run through the business, and other tactics used to artificially deflate income.
Step 2: From “Gross Income” to “Net Income”
Only after the court has determined the true gross income (e.g., the $40,879 in Hunter‘s 2019 return) does the second part of the calculation begin.
“Net income” is found by taking that true gross income and subtracting a specific list of allowable personal deductions. These are set by statute and include:
- Taxes: Federal, state, and local income taxes.
- Self-Employment Tax: This is the big one. A W-2 employee pays half of their FICA taxes (7.65%), and the employer pays the other half. A self-employed person must pay the entire amount (15.3%) themselves. This is a mandatory, significant deduction that must be accounted for.
- Mandatory Union Dues:
- Mandatory Retirement Payments: This is not for voluntary 401(k) contributions. It is for required pensions, such as for a government worker.
- Health Insurance Premiums: For the parent and for the child (unless the child’s portion is handled separately in the guidelines).
- Court-Ordered Child Support: For children from another relationship.
- Court-Ordered Alimony: From a previous marriage.
In the Hunter case, the Former Wife’s 2019 tax return, after business expenses, showed a taxable income of only $19,355. Her 2020 return showed a taxable income of just $6,841. These figures clearly demonstrate that her final net income for child support purposes was nowhere near the $60,000 to $70,000 “gross receipt” figure the court improperly used.
What Happens When the Court Gets it Wrong?
The outcome in Hunter is a perfect, if painful, example of what happens when a trial court’s calculations are not supported by evidence. The entire child support portion of the final judgment was reversed and “remanded” (sent back) to the trial court “for recalculation of the parties’ child support obligations.”
This means that after a full trial and a full appeal, the parties are now right back where they started on this issue. They must go back to the trial court (likely incurring more legal fees and spending more time) to re-litigate the very same issue. The Former Wife, who was incorrectly denied child support, has now gone years without it, and the Former Husband, who received a temporary “win,” now faces a new hearing where a significant child support obligation (and potential arrears) could be ordered.
This is a financial and emotional disaster for both sides. It is a powerful example of why “getting it right the first time” is the most important, and ultimately least expensive, goal in any divorce. A Tampa divorce lawyer whose primary goal is to build an accurate, well-documented, and legally sound case from day one is not just an advocate; they are a project manager whose job is to prevent this exact kind of costly “re-do.”
The Imputation of Income: The Other Side of the Coin
While the Hunter case involved a trial court over-stating a self-employed person’s income, the same principles are used to prevent a self-employed person from under-stating their income.
A court in Tampa is not required to blindly accept a party’s financial affidavit or tax return. If a party’s sworn financial statement is contradicted by the evidence, the court can disregard it.
This often happens when a self-employed person claims an unusually low income, but their lifestyle or bank statements tell a different story.
- Commingled Funds: If a business owner pays all their personal bills (mortgage, car payment, groceries) directly from their business account, a Tampa divorce lawyer will argue that these “payments” are actually income available for support.
- Excessive or Fraudulent Expenses: A court can disallow business deductions that are clearly personal or unreasonable.
- Cash-Based Businesses: For businesses that are “all cash,” a Tampa divorce lawyer may hire a forensic accountant to analyze bank deposits and lifestyle expenses to prove a party is earning far more than they claim.
In these situations, a court has the power to “impute” income—that is, to assign an income to a party that is higher than what they claim. The Hunter case simply shows that this imputation must also be based on “competent substantial evidence,” not a judge’s guess.
Conclusion: In Divorce, Math is Not Optional
The Hunter v. Hunter decision is a critical reminder from the appellate courts: the mathematical formulas in the child support statutes are not optional guidelines. They are mandatory. The court’s findings must be based on net income, and those income figures must be supported by competent substantial evidence in the record.
For self-employed professionals, business owners, and independent contractors in Tampa, this case is a flashing red light. You cannot simply walk into court and state your income. You must be prepared to prove it, documenting every dollar of your gross receipts and, more importantly, every “ordinary and necessary” business expense you are claiming. A failure to provide this documentation, or a judge’s failure to properly consider it, can lead to a financially devastating and legally incorrect outcome.
The complexities of self-employment income, business valuations, and the discovery of hidden assets are among the most difficult challenges in family law. Navigating this requires a Tampa divorce lawyer with the experience to analyze tax returns, scrutinize financial records, and present a clear, evidence-based case to the court. If you are a self-employed individual facing divorce, contact our office for a consultation to ensure your income is calculated fairly and correctly under the law.
Frequently Asked Questions (FAQ)
What is the difference between gross income and net income for Florida child support? Gross income is your total income before any deductions. For the self-employed, this is your gross receipts minus ordinary business expenses. Net income is your gross income minus allowable personal deductions like taxes, self-employment tax, and health insurance. Florida law requires all support to be based on net income.
What is a “competent substantial evidence” error? This is a legal standard. It means a judge’s factual finding (like a party’s income) was not supported by any real, reliable evidence in the trial record. As the Hunter case shows, this is a “facial error” that can lead to an appeal being reversed.
What business expenses are deductible for child support calculations? The law allows deductions for “ordinary and necessary expenses required to produce income.” This can include office or booth rent, supplies, business-related utilities, professional licenses, and other costs directly related to operating your business.
Why did the Hunter v. Hunter case get reversed? The trial court was reversed because it improperly calculated the self-employed Former Wife’s income. The judge used her “gross receipts” (around $60k) as her income and ignored over $21,000 in legitimate business expenses, which was an error of law.
Does a judge have to accept my tax return as proof of my income? No. A tax return is strong evidence, but it is not the only evidence. A court can find that a self-employed person’s income is higher than their tax return if evidence (like bank statements or lifestyle) shows they are earning more, or if their claimed business deductions are found to be personal or fraudulent.
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