My situation is as follows. I am the owner of a 13 month old business and currently have a W-2 income from that business of less than $5000/year all the while paying $1400/month in child support and having debt related to the business of over $200k. I did not have or receive any W-2 income in 2019, while starting this business. I also do not have any other sources of income at the present. I am receiving a monthly payment of equitable distribution from my ex-spouse from a business that we previously owned. I am wondering if this equitable distribution is considered when modifying child support, and where I can find documentation as such.
The equitable distribution payments from your ex-spouse would not be counted as income for child support purposes as these are tax-free payments to equalize the net distribution of the marital assets and marital debts from the marriage.
The NC Child Support Guidelines define income as “a parent’s actual gross income from any source, including but not limited to income from employment or self-employment (salaries, wages, commissions, bonuses, dividends, severance pay, etc.), ownership or operation of a business, partnership, or corporation, rental of property, retirement or pensions, interest, trusts, annuities, capital gains, social security benefits, workers compensation benefits, unemployment insurance benefits, disability pay and insurance benefits, gifts, prizes and alimony or maintenance received from persons other than the parties to the instant action.”
Your income for child support purposes would be proven by tax returns (personal and corporate), bank statements, profit/loss statements, balance sheets, etc.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here
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 only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.