Child Support/Business Owner

Please advise what the courts look at as income to distinguish one’s income and if they were to own and open their own business. This business will be paying one parent their income…does courts look at the. Business receivales to determine the parents income for child support or just the personal tax returns and 1099s not including the business receivables ?
Thank you.

There are many types of documents that a court will consider relevant to determine income of a self-employed person.

This includes corporate and personal tax returns, 1099s, W-2s, K-1s, business and personal bank account statements, business profit/loss statements, business balance sheets, etc.

The NC Child Support Guidelines state that “[g]ross income from self-employment, rent, royalties, proprietorship of a business, or joint ownership of a partnership or closely held corporation, is defined as gross receipts minus ordinary and necessary expenses required for self-employment or business operation.”

Anna Ayscue

Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest

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