Child Support & Business Owners


#1

I know that you can request financial records including tax records, for I believe the last year. But I do not believe there is a way to show income if he does not file that income with the IRS. We looked into this due to my husband’s ex working for her mother and getting paid in cash for working full time but filing hours for part time. If there is no paper trail, there is no way to prove it in court. [V]

My husband also owns his own business but he gets a salary and a W-2 just like his employees do. The child support he pays is based on his actual income and not on the company records.


#2

You can use the court discovery process to attempt to get proof of his income, such as copies of his accounts receivable, bank records etc. Unless he is being paid cash under the table, some record of his actual income should exist.

Helena M. Nevicosi
Attorney with Rosen Law Firm

4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.256.1665 direct fax

10925 David Taylor Drive, Suite 100
Charlotte, North Carolina 28262
704.644.2831 main voice
704.307.4595 main fax

1829 East Franklin Street, Bldg 600
Chapel Hill, NC 27514
919.321.0780 main phone
919.787.6668 main fax

ROSEN.COM

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.


#3

I have 2 children, and my ex owns a restaurant/bar as well as works for another restaurant. We are revisiting child support soon, and I would like to know what guidelines are used to determine his income since he owns his own business. He’s been able to hide his real income for years and the kids get the short end of the support. If they use his tax returns/W2…and they are fudged…are there any other means of figuring close to his real income? Thanks for any guidance you can give me.