Support contribution for self-employed spouse


#1

Yep. I was part of a general partnership, 50-50, and half of the receipts were considered mine. However, I filed a partnership return, and on it we included what we paid ourselves, so that was the only number the court considered, not our receipts. But as a sole prop, it’s all you, and the court will find it pretty confusing how you can own a business but not have any income from it? How does he support himself? If it is a side business, you can ask him to show his earnings on his Schedule C; the court will decide how to take that into account.


#2
quote:
Originally posted by fatlilbeagle
Yep. I was part of a general partnership, 50-50, and half of the receipts were considered mine. However, I filed a partnership return, and on it we included what we paid ourselves, so that was the only number the court considered, not our receipts. But as a sole prop, it's all you, and the court will find it pretty confusing how you can own a business but not have any income from it? How does he support himself? If it is a side business, you can ask him to show his earnings on his Schedule C; the court will decide how to take that into account.

#3

Dear Kathrynpg:

Greetings. No, not necessarily, since the gross receipts do not reflect accurately gross income of an employee. Instead, we would look to see how much his net was after the costs of the business (or the profit) before taxes and/or look to impute him income in the range of someone with the same skill set in the same field of employment. Thank you.

Janet L. Fritts
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

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Charlotte, North Carolina 28262
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704.307.4595 main fax

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Chapel Hill, NC 27514
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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.


#4

In N.C., is child support obligation for the self-employed spouse based on the gross receipts of the business that he owns, if he is the sole proprietor (even if he does not pay himself a salary)?