For child support in Montana, income means much more than a paycheck. The guidelines count "economic benefit from whatever source derived," subject to a short list of exclusions, and they allow a court to attribute income to a parent who is not working to capacity (ARM 37.62.105, 37.62.106). Every later step of the calculation depends on this number, so it deserves the most care. This page is part of our Montana Divorce Guide.
The Basic Rule
Income for child support "includes actual income, imputed income ... or any combination thereof which fairly reflects a parent's resources available for child support. Income can never be less than zero" (ARM 37.62.105(1)). Two presumptions sit behind that rule. Parents are presumed capable of earning income from full-time employment, and full time is presumed to be 40 hours a week, though it may be more or less depending on the profession or the employer's policies. The net value of a parent's assets may also be considered where it would be inappropriate not to do so.
What Is Counted as Actual Income
| Category | Examples listed in ARM 37.62.105(2) |
|---|---|
| Earnings | Salaries, wages, tips, commissions, bonuses, severance pay, draws or advances against wages |
| Business and investment | Profits, dividends, interest, trust income, annuities, royalties, capital gains net of capital losses |
| Retirement | Pensions and periodic distributions from retirement plans |
| Benefits | Social Security benefits, veteran's benefits, workers' compensation, unemployment benefits, disability payments, the earned income credit |
| From a former spouse | Alimony or spousal maintenance |
| Noncash | In-kind compensation, personal use of a vehicle, housing, payment of personal expenses, food, utilities |
The list is not exclusive. The rule also counts grants, scholarships, and other subsidies that help with a parent's living expenses and do not have to be repaid, as well as expense allowances and per diem to the extent they are not offset by documented actual expenses. Reimbursement of actual employment expenses is not income (ARM 37.62.105(2)(d), (e)).
Capital gains get their own treatment. Gains from recurring transactions may be averaged over at least three years. A gain from a single event may be used to represent income over one or more years (ARM 37.62.105(2)(a)).
What Is Not Counted
| Excluded | Rule |
|---|---|
| A new spouse's or household member's income | ARM 37.62.105(3)(a) |
| Means-tested veteran's benefits | ARM 37.62.105(3)(b) |
| Means-tested public assistance, including TANF cash assistance | ARM 37.62.105(3)(c) |
| Supplemental Security Income (SSI) | ARM 37.62.105(3)(d) |
| SNAP benefits | ARM 37.62.105(3)(e) |
| Child support received from other sources | ARM 37.62.105(3)(f) |
| Adoption subsidies, unless the subsidized child's expenses are in the calculation | ARM 37.62.105(3)(g) |
| Social Security benefits a child receives because of a parent's or the child's disability | ARM 37.62.105(4) |
Imputed Income for a Parent Who Is Not Working
Imputed income is "income not actually earned by a parent, but which is attributed to the parent" under the rule (ARM 37.62.106(1)). It is appropriate when a parent is unemployed, is underemployed, fails to produce sufficient proof of income, has an unknown employment status, or is a student (ARM 37.62.106(2)). The definitions describe an underemployed parent as one working less than full time when full-time work is available in the community, or earning less than the parent has earned or is qualified to earn when higher paying jobs for which the parent is qualified are available.
The amount is not picked arbitrarily. It must be based on the parent's residence and recent work and earnings history, the parent's occupational, educational, and professional qualifications, existing job opportunities and earning levels in the community, the parent's age, literacy, health, criminal record, record of seeking work and other barriers, the availability of employers willing to hire the parent, and other relevant background factors (ARM 37.62.106(3)). Imputed income may be added on top of actual income.
Students have a specific rule. Where the education or retraining will result, within a reasonable time, in an economic benefit to the child, a full-time student's earning capacity is based on full-time work for 13 weeks and about half-time work for the remaining 39 weeks of the year, unless actual income is greater (ARM 37.62.106(5)).
When Income Is Not Imputed
The same rule lists the situations in which income is not imputed (ARM 37.62.106(6)):
- the reasonable, unreimbursed cost of child care for dependents in the parent's household would offset all or a substantial part of the imputed income;
- the parent is physically or mentally disabled to the extent that the parent cannot earn income, or is incarcerated for more than 180 days;
- unusual emotional or physical needs of a legal dependent require the parent's presence in the home;
- the parent has made diligent efforts to find and accept suitable work, or to return to customary self-employment, to no avail; or
- the court or hearing officer finds other circumstances that make imputing income inequitable, in which case the amount is reduced only as far as needed to remove the inequity.
This is why a parent who stayed home with young children is not automatically assigned a full-time wage. The facts decide it. Our page on divorce for stay-at-home parents looks at that situation more broadly.
Proving and Annualizing Income
A parent "must swear to the accuracy and authenticity of all financial information submitted," and income must be documented with records such as pay stubs, employer statements, income tax returns, and profit and loss statements (ARM 37.62.108(1), (2)). Income and expenses should be annualized so that a temporary or seasonal swing does not skew the result. Seasonal or fluctuating income may be averaged over a period long enough to reflect earning ability, and a recent change that is expected to continue may be projected forward (ARM 37.62.108(3)).
These records overlap with the disclosures every Montana divorce requires. See financial disclosure in a Montana divorce and our divorce documents checklist. Once income is settled, the remaining steps are described in how child support is calculated, and the child support practice page describes how the firm can help.
This page explains Montana law in general as of the 2025 Montana Code Annotated and the current Montana Child Support Guidelines. It is not legal advice about your specific case.