In-Kind Income: How Non-Cash Perks Affect Child Support

 Posted on October 24, 2025 in Family Law

Many Illinois parents earn at least part of their income outside a traditional paycheck in the form of employer-provided housing or a company car, or meals and travel paid for by the employer. Under 750 ILCS 5/505(a)(3), "income" for purposes of calculating child support includes both cash and in-kind benefits that reduce personal living expenses. This means that non-cash compensation can significantly increase a parent’s child support.

Whether you expect to receive or pay child support, it is vital to understand how the perks of a job or self-employment wages can affect the amount of child support. A knowledgeable Will County, IL family law attorney can explain how child support can potentially be affected by job perks.

What is the Definition of "Income" Under Illinois Law

Income is defined as "any form of payment to an individual, including wages, salary, commissions, bonuses, and benefits." As you can see, this is a broad interpretation of "income." Appellate cases in the state have reaffirmed that non-cash items count when they directly reduce a parent’s expenses. Some types of "in-kind" compensation, benefits, or perks that would be counted as income for the purpose of child support include:

• Barter or trade-for-service arrangements, which often occur among freelancers and gig workers (a free residence as part of the employment arrangements).
• Employer-provided housing or utilities (common among live-in property managers or clergy)
• Company vehicles, and/or gas cards, when used at least partially for personal benefit
• Meal plans, travel expenses, or per diem allowances are used when they substitute for household expenses.
• Groceries provided by an employer
• Paid personal expenses like phone bills or insurance premiums

Since these perks and benefits can significantly reduce a parent’s monthly living expenses, they are used in child support calculations to determine a parent’s total income and earning capacity.

How Are In-Kind Benefits and Perks Calculated as Income?

Courts will often use the fair-market value of a benefit when determining a parent’s income. This means if a parent is provided a free two-bedroom apartment as part of his or her employment, then the average rent for a comparable apartment in the area will be added to that parent’s income. If the benefit or perk is only partially personal, then the value is prorated between business and personal use. The Department of Healthcare and Family Services (HFS) guidelines encourage documentation of non-cash benefits on Form 505-D.

When Can In-Kind Compensation Become Controversial?

Self-employed parents who pay personal expenses through a business to reduce their "income," or those with a family-owned business, can create controversy over whether perks are disguised income or legitimate business costs, making the process difficult. There may be issues with disclosure when one parent hides perks on his or her financial affidavit. There is also the risk of counting the same benefit value twice if it has already been reflected in business income.

Parents paying child support should keep detailed records that clearly separate personal vs. business use of any perk or benefit. Parents receiving child support should request all employer or business reimbursements from the other parent during discovery. W-2s and 1099s, along with employer-benefit statements, can be subpoenaed from a parent who is self-employed or receives considerable job benefits.

Contact a Joliet, IL Child Support Lawyer

If you or your spouse earns income through non-traditional means, there could be over- or under-reporting of income for child support purposes. Since Illinois family courts take a broad view of what counts as "income," even relatively minor oversights can lead to major financial exposure. A Will County, IL family law attorney from Reeder & Brown, P.C. can review all financial disclosures, ensuring accuracy before child support is calculated. Our attorneys are honest and provide exemplary customer service. We have handled thousands of criminal cases, both as prosecutors and defense attorneys. Call 815-885-5980 to schedule your free consultation.