Amount of child support??

[texas1981]

I live in Texas and pay child support to my ex-wife for my 11 year old daughter. We've been divorced for 9 years now. I am up to date on payments and always have been. I believe the amount I have been paying is more that enough to support my daughter when she is with her mother. I have remarried and current situations and opportunity has presented itself to start a business. There is of coarse the chance of making a lot more money than I could ever make with my current employer (as well as not). My concern would be that my ex-wife would take full advantage of that, drawing as much money as she possibly could from me. I actually know this would happen. I'm definitely not opposed to paying child support and will continue to pay at least what I've been paying for the past 9 years even if not required to as that has become part of there expected income.

Having said that, if this new business was setup as an LLC of two shares (Me and My wife 50/50) and 100% disbursements were setup to go to my wife say until my daughter turns 18. Would my ex-wife legally be able to force me to pay more than what I'm currently paying?

 

[Proserpina]

I live in Texas and pay child support to my ex-wife for my 11 year old daughter. We've been divorced for 9 years now. I am up to date on payments and always have been. I believe the amount I have been paying is more that enough to support my daughter when she is with her mother. I have remarried and current situations and opportunity has presented itself to start a business. There is of coarse the chance of making a lot more money than I could ever make with my current employer (as well as not). My concern would be that my ex-wife would take full advantage of that, drawing as much money as she possibly could from me. I actually know this would happen. I'm definitely not opposed to paying child support and will continue to pay at least what I've been paying for the past 9 years even if not required to as that has become part of there expected income.

Having said that, if this new business was setup as an LLC of two shares (Me and My wife 50/50) and 100% disbursements were setup to go to my wife say until my daughter turns 18. Would my ex-wife legally be able to force me to pay more than what I'm currently paying?

It always intrigues me when posters say that they pay "more than enough".

What does that mean, I wonder?

 

[texas1981]

Sorry, I'll clarify that for you. When I say it. I mean that if I had primary custody of my daughter the amount of money that my ex-wife is currently receiving from me though child support would be more than enough to pay for food/shelter/entertainment/clothes/ect.

 

[mistoffolees]

Sorry, I'll clarify that for you. When I say it. I mean that if I had primary custody of my daughter the amount of money that my ex-wife is currently receiving from me though child support would be more than enough to pay for food/shelter/entertainment/clothes/ect.

First, most non-custodial parents greatly underestimate what it costs to support a child.

Second, legally, it's the state that says how much you pay. Your opinion of what it would cost if the child ate nothing other than rice and pasts and lived in a closet is not relevant.

Every state has a child support calculator which will tell how how much is "more than enough".

Having said that, if this new business was setup as an LLC of two shares (Me and My wife 50/50) and 100% disbursements were setup to go to my wife say until my daughter turns 18. Would my ex-wife legally be able to force me to pay more than what I'm currently paying?

If an LLC is set up with two owners and one person receives 100% of the disbursements, you're on very, very thin ice. Now, if only that parent is working in the business and the other is a passive owner, it could work. But if the disbursements are significantly greater than a fair market salary for that person, the court could easily determine that the income is being distributed to defraud the ex of child support.

LLC income can be included in the child support calculation.

 

[LdiJ]

I live in Texas and pay child support to my ex-wife for my 11 year old daughter. We've been divorced for 9 years now. I am up to date on payments and always have been. I believe the amount I have been paying is more that enough to support my daughter when she is with her mother. I have remarried and current situations and opportunity has presented itself to start a business. There is of coarse the chance of making a lot more money than I could ever make with my current employer (as well as not). My concern would be that my ex-wife would take full advantage of that, drawing as much money as she possibly could from me. I actually know this would happen. I'm definitely not opposed to paying child support and will continue to pay at least what I've been paying for the past 9 years even if not required to as that has become part of there expected income.

Having said that, if this new business was setup as an LLC of two shares (Me and My wife 50/50) and 100% disbursements were setup to go to my wife say until my daughter turns 18. Would my ex-wife legally be able to force me to pay more than what I'm currently paying?

It really cannot be done that way. Unless you elect that your LLC be treated as a C-Corp, which would be a big mistake, it doesn't matter how the money gets distributed, the profits of the LLC will still be evenly divided between the two of you on Schedule K-1s

Therefore even if I approved of what you were trying to do, it wouldnt work anyway.

 

[Proserpina]

So I wasn't miss-reading this? Good.

I was concerned initially that I was jumping the gun. But yes, this OP is clearly trying to defraud the ex.

Which is, effectively, defrauding his own kids.

 

[Zigner]

In a nutshell, OP wants to say that he has no income (assuming he is planning on quitting his current job.)

That's not going to happen. The court wasn't born yesterday.

 

[NellieBly]

Why do you have to be "forced" into sharing your wealth with your child?

 

[mistoffolees]

It really cannot be done that way. Unless you elect that your LLC be treated as a C-Corp, which would be a big mistake, it doesn't matter how the money gets distributed, the profits of the LLC will still be evenly divided between the two of you on Schedule K-1s

Therefore even if I approved of what you were trying to do, it wouldnt work anyway.

Depends. If he is truly talking about distribution, you are correct. But frequently, people talk about distribution when they're talking about salaries (it's not called salary with an LLC, but the concept is the same.).

It IS possible to set up an LLC so that one partner gets a guaranteed distribution of x (where x takes up most of the profits) and then they split the remainder. If the LLC docs are properly configured, this money can come out before the legal distribution of profits, so it IS possible for one person to show the bulk of the income on their taxes.
LLC, Taxes - Salary Payments In an LLC | Entrepreneur.com

Basically, for all intents and purposes, the guaranteed payment acts like a salary for the one person - and is deductible as an LLC business expense. The net effect is that one person shows most of the income.

Of course, that's fraudulent if the two are actually equal partners in the business and the intent is solely to reduce child support.

 

[Proserpina]

Depends. If he is truly talking about distribution, you are correct. But frequently, people talk about distribution when they're talking about salaries (it's not called salary with an LLC, but the concept is the same.).

It IS possible to set up an LLC so that one partner gets a guaranteed distribution of x (where x takes up most of the profits) and then they split the remainder. If the LLC docs are properly configured, this money can come out before the legal distribution of profits, so it IS possible for one person to show the bulk of the income on their taxes.
LLC, Taxes - Salary Payments In an LLC | Entrepreneur.com

Basically, for all intents and purposes, the guaranteed payment acts like a salary for the one person - and is deductible as an LLC business expense. The net effect is that one person shows most of the income.

Of course, that's fraudulent if the two are actually equal partners in the business and the intent is solely to reduce child support.

I'm not sure the intent here is to reduce child support - but to make sure it's not increased by OP's venture.

 

[mistoffolees]

I'm not sure the intent here is to reduce child support - but to make sure it's not increased by OP's venture.

Which means that CS would be lower than it would be if OP fairly reported his income.

 

[Proserpina]

Which means that CS would be lower than it would be if OP fairly reported his income.

Not disputing that.

"Reduce" would indicate lowering the amount already ordered.

Just clarifying.

 

[TiredinCali]

First, most non-custodial parents greatly underestimate what it costs to support a child.

Second, legally, it's the state that says how much you pay. Your opinion of what it would cost if the child ate nothing other than rice and pasts and lived in a closet is not relevant.

Every state has a child support calculator which will tell how how much is "more than enough".



I would have to agree that NCP's really don't seem to get how much a child actually costs. Statements such as "more than enough" really bother me as a CP. I do without plenty so my child has what she needs, while the NCP has that same attitude, "I give you plenty, I cant imagine why you feel I need to do any more".....Sad.