Iowa Ct. R. 9.5 lists the allowable items that may be deducted in determining net monthly income for child support purposes. The decision in In re Marriage of Allebach illustrates application of these items in a situation where the payor is self-employed. In Allebach, the payor presented evidence of his cash flow, which included two deductions for principal and interest payments related to the purchase of corporate stock. The appellate court addressed the issue as follows:
While we find the record generally supports Richard’s position, we find the CPA’s assertion of cash flow to be artificially low. This is because two of the deductions relied on by the CPA firm were a $41,685.00 annual principal payment and a $6,315.00 annual interest payment on an installment contract to Daba for the purchase of stock. Although Richard may be obligated under this contract, we do not consider it as a deduction in arriving at net income. See generally Iowa Ct. R. 9.5 (providing a list of allowable deductions for determining net monthly income in calculating child support). With these amounts added back to income, we find Richard’s annual net income to be $161,913.00 or net monthly income of just under $13,500.00.
Of note is that this appeal was from entry of a temporary support order, which is appealable of right, unlike temporary custody orders which may only be appealed by a grant of interlocutory review.
