MD FAMILY 12-101, Court's
power to award Child Support
*10170 Code, Family Law,
(1) Income. -
"Income" means: (1) actual income of
a parent, if the parent is employed
to full capacity; or (2) potential
income of a parent, if the parent is
(2) Actual income.
(1) "Actual income" means income
from any source.
(2) For income from self-employment,
rent, royalties, proprietorship of a
business, or joint ownership of a
partnership or closely held
corporation "actual income" means
gross receipts minus ordinary and
necessary expenses required to
(3) "Actual income" includes:
(v) dividend income;
(vi) pension income;
(vii) interest income;
(viii) trust income;
(ix) annuity income;
(x) Social Security benefits;
(xi) workers’ compensation benefits;
(xii) unemployment insurance
(xiii) disability insurance
(xiv) alimony or maintenance
(xv) expense reimbursements or
in-kind payments received by a paret
in the course of employment, self-
employment, or operation of a
business to the extent the
reimbursements or payments reduce
the parents personal living
(4) Based on the circumstances of
the case, the court may consider the
following items as actual income:
(i) severance pay;
(ii) capital gains;
(iii) gifts; or
(5) "Actual income" does not include
benefits received from means-tested
public assistance programs,
including temporary cash assistance,
Supplemental Security Income, food
stamps, and transitional emergency
medical, and housing assistance.
(3) Adjusted actual income.
"Adjusted actual income" means
actual income minus:
(1) preexisting reasonable child
support obligations actually paid;
(2) of this subtitle, alimony or
maintenance obligations actually
(3) the actual cost of providing
health insurance coverage for a
child for whom the parents are
jointly and severally responsible.
(4) Combined adjusted actual income.
"Combined adjusted actual income"
means the combined monthly adjusted
actual incomes of both parents.
(5) Potential income. "Potential
income" means income attributed to a
parent determined by the parent’s
employment potential and probable
earnings level based on, but not
limited to, recent work history,
prevailing job opportunities, and
earnings levels in the community.
(6) Ordinary and necessary expenses.
"Ordinary and necessary expenses"
does not include amounts allowable
by the Internal Revenue Service for
the accelerated component of
depreciation expenses or investment
tax credits or any other business
expenses determined by the court to
be inappropriate for determining
actual income for purposes of
calculating child support.
(7) Extraordinary medical expenses.
(1) "Extraordinary medical expenses"
means uninsured expenses over $100
for a single illness or condition.
(2) "Extraordinary medical expenses"
includes uninsured, reasonable, and
necessary costs for orthodontia,
dental treatment, asthma treatment,
physical therapy, treatment for any
chronic health problem, and
professional counseling or
psychiatric therapy for diagnosed
(8) Shared physical custody. "Shared
physical custody" means that each
parent keeps the child or children
overnight for more than 35% of the
year and that both parents
contribute to the expenses of the
child or children in addition to the
payment of child support.
(9) Adjusted basic child support
obligation. "Adjusted basic child
support obligation" means an
adjustment of the basic child
support obligation for shared
(10) Basic child support obligation.
"Basic child support obligation"
means the base amount due for child
support based on the combined
adjusted actual incomes of both