Child Support Calculations


#1

Dear wsams38:

Greetings. I am not sure what you mean by “he does not believe” that child support is based on current income. The law does not depend on what your ex believes in. You apparently read the law, and you are correct about the adding back in of certain tax deductions. Yes, he can be made to give you business accounting records through a subpoena or document request.

Alimony is not really “calculated” as much as it is negotiated. There is not a calculator for alimony as there is for child support. Instead, we look to what each party needs to maintain their standard of living. You would use your spouse’s income and your income, child support payments, etc., to determine how much alimony would be appropriate.

Finally, I wanted to mention that we often have to employ an expert in business valuation and compensation for a contractor. They have a complex business structure and determining their exact income can be difficult. Best of luck.

Janet L. Fritts
Attorney with Rosen Divorce
4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
RosenDivorce.com
919-787-6668

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.


#2

I would also like to say “thank you” Janet for the responses in the past. This is an awesome site and I have learned a lot through the many posts and responses. Thanks for the great site.

My (x)husband is a self employed contractor. He does not believe that child support is based on current income. He feels that he only has to pay based on our income taxes for last year. Is that a correct assumption? He will not give up his profit and loss statement, I did manage to get a copy of the business accounting records through 8-31-04. Can he be made to give this information?

He only made a business profit of approx 19,500. However when I read the child support guidelines it states that NC does not include all the deductions that the IRS does for tax purposes.

It stated that depreciation costs and tax credits are to be added back to the above figure. Is this correct? The depreciation credits for last year were appox 30,000. Am I correct in assuming that these two figures are added together to get the amount he would be required to pay in child support? Is there anyway around this? (loop holes)

How is alimony calculated? Would it be based on the same figures? Something I read mentioned hourly wages, I am confused and could not find anything that defines how this is calculated.

Again Thanks for the wonderful site and all your gracious help!