What the Rise in the Gig Economy Means for Divorce

Gone are the days when you could get a stable job right out of school, work there for 30 to 40 years, and retire with a nice pension. Nowadays, people focused on growing in their career job hop every three to five years. Those who aren’t cut out for conventional employment or who want to supplement their regular income lean on the gig economy.

Money is a huge part of a divorce, and obviously, changes in income may affect how your divorce pans out. Find out what gig work could mean for your split, and for more personalized assistance, call Nowell Law Firm at 864-469-2481.

Gig Work is More Common Than Ever

Gig work has always given people the opportunity to boost their income and make up for lean times at work, but it really took off during the COVID-19 pandemic. With businesses shut down across the country, people had to get creative—and they did. While there are hundreds of ways to do gig work, some examples include:

• Freelance web design, writing, and graphic design.
• Contract construction work and renovations.
• Pet sitting and dog walking.
• Performing – often doing online performances.
• Social media management.
• Lyft, Uber, and other rideshare services.
• Landscaping services.
• Food delivery.

If you or your ex do gig work, it could have an effect on your divorce settlement.

How Gig Work Changes Your Income

Whether you or your ex do gig work as a main source of income or a supplementary source, it can significantly impact your income. Of course, it changes the amount you make—but beyond that, it may change when you earn it.

A lot of gig work is seasonal, which means that you will have to average out your income across a year. Imagine a situation where one partner is a wedding singer in addition to their day job. It boosts their overall income by 30%. However, 90% of that is earned between May and September.

This may leave the person with the side gig flush with cash during the summer but living a bit leaner in the winter. Additionally, what if the economy fluctuates? A side hustle that brought in $20,000 per year when everything was rosy could drop to $2,000 a year when people start cutting back.

Complications in Divorce

First, gig work can complicate the finances of your divorce. Imagine a scenario where one partner is ordered to pay child support and alimony. The court looks at their past two years of income, including their gig work, and bases their numbers on that.

The paying partner claims that their gig work has slowed down and that it’s unfair to base their payments on that. They may also say that they took on that extra work because they were losing so much money in temporary child support and spousal support (while the couple was separate and the divorce was in process), so it’s unfair to make them pay even more.

In situations where gig work is seasonal, these types of payments may require a bit of planning by the paying partner. They may have to set aside extra money during their high-earning months to cover child support payments during their tight months. If gig work slows down or ramps up dramatically, some flexibility in the payment amount (based on the months of the year) might be warranted.

Gig work can also influence child custody and visitation time. In many cases, gig work requires weekend and evening work. That may mean missing out on scheduled parenting time or requiring a more flexible custody schedule.

This can end up being a cycle—a parent works more to earn enough to pay for child support, but that extra work reduces the time they have with their child, which further increases their child support. In these scenarios, it is crucial for the parents to work together, understand that their children benefit from time with both parents and work towards a fair balance.

Explore Your Legal Options with Nowell Law Firm

Although divorce is never easy, gig work can definitely make it even more complicated. That’s why it’s so important to work with a skilled attorney from the very beginning. The team at Nowell Law Firm is here to support you through the entire marriage dissolution process. Give us a call at 864-469-2481 or fill out our online contact form to schedule a consultation.