9.11(2) Adjustments are necessary to provide for the needs of the child(ren) or to do justice between the parties, payor, or payee under the special circumstances of the case.Karen relies upon the case of In re Marriage of Will, 602 N.W .2d 202, 205 (Iowa Ct.App.1999), where a father had gifted certain assets to his current wife and she received interest income. We determined the interest income was not part of the father's net monthly income as defined by the guidelines, but was a factor to be considered in determining whether a deviation from the guideline amounts was justified.
The child support guidelines are to be followed unless their application would lead to an unjust or inappropriate result. In re Marriage of Will, 602 N.W.2d 202, 205 (Iowa Ct.App. 1999). "There is a rebuttable presumption the amount of child support determined according to the guidelines is the correct amount of child support to be awarded." Id. at 205 (citing In re Marriage of Brown, 487 N.W.2d 331, 333 (Iowa 1992)).
The child support guidelines are to be strictly followed unless their application would lead to an unjust or inappropriate result. Iowa Code § 598.21(4)(a) (2001); In re Marriage of Will, 602 N.W.2d 202, 205 (Iowa Ct.App. 1999). "There is a rebuttable presumption the amount of child support determined according to the guidelines is the correct amount of child support to be awarded." Will, 602 N.W.2d at 205 (citing In re Marriage of Brown, 487 N.W.2d 331, 333 (Iowa 1992)); see alsoIowa Child Support Guidelines Rule 9.4. The amount may be increased or decreased if necessary to provide for the needs of the children and do justice between the parties under the specific facts of the case.
The essence of Daniel's argument is that the district court was without authority to make an upward departure from the guideline amount, as it failed to find the use of his earning capacity was necessary to avoid substantial injustice, provide for his daughter's needs or otherwise do justice between the parties. See In re Marriage of Will, 602 N.W.2d 202, 205-06 (Iowa Ct.App. 1999). This argument overlooks a crucial step in the modification process.
"Generally, completed federal and/or state income tax returns are the best evidence of income" for child support determinations. In re Marriage of Will, 602 N.W.2d 202, 204 (Iowa Ct.App. 1999). Daryl contends, however, it is inequitable to use his net income of $22,206 from the 1999 income tax return to assess whether a substantial change of financial circumstances occurred in this case. He points out his 1999 adjusted gross income was skewed or artificially increased because it included $25,231 due to the conversion of his traditional IRA to a Roth IRA. This conversion of the IRA created taxable, but Daryl contends illusory, 1999 income that masked actual reported losses from the farming operation.
We are not bound by the district court's findings of fact, but we give them weight. Iowa R. App. P. 14(f)(7); In re Marriage of Will, 602 N.W.2d 202, 204 (Iowa App. 1999); In re Marriage of Powell, 474 N.W.2d 531, 532 (Iowa 1991). Both parents have a legal obligation to support their children, not necessarily equally but in accordance with his or her ability to pay.
On the first point, Joshua's substantial inheritance of approximately $100,000 was a proper factor to be considered in a potential deviation from the guideline amount. See In re Marriage of Will, 602 N.W.2d 202, 205 (Iowa Ct. App. 1999) (finding inheritance or gifted property not to be a part of a person's net monthly income, but as a factor that justifies deviating from the guideline amounts). Here, the district court had good cause for a deviation, especially considering that Joshua's lack of regular income was due to his own incarceration.
Non- recurring income should not be considered. In re Marriage of Will, 602 N.W.2d 202, 204 (Iowa Ct. App. 1999). Here, the district court included no anomalous, uncertain, speculative, or non-recurring income in its calculations.
The more credible evidence, including the parties' testimony, expert testimony, tax returns, and other financial records, supports the district court's findings regarding Scott and Maja's respective incomes. See In re Marriage of Knickerbocker, 601 N.W.2d 48, 51 (Iowa 1999) ("In calculating child support, the first step is to determine the parents' current monthly net income from the most reliable evidence presented."); Hillman v. Cannon, No. 11-0367, 2011 WL 6670657, at *6 (Iowa Ct. App. Dec. 21, 2011) (discussing evidence relevant to establishing a partnership); In re Marriage of Will, 602 N.W.2d 202, 204 (Iowa Ct. App. 1999) (explaining that "completed federal and/or state income tax returns are the best evidence of income and tax liability"). We have considered each of the parties' arguments whether or not set forth explicitly herein.
Iowa Ct. R. 9.5. “Gross monthly income” for purposes of calculating child support is not defined in the guidelines, although we have stated, “Generally, completed federal and/or state income tax returns are the best evidence of income and tax liability.” In re Marriage of Will, 602 N.W.2d 202, 204 (Iowa 1999). Yet “gross monthly income” may not necessarily equate to a party's adjusted net income on their tax return.