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Thread: How to prove capacity to earn. Ex taking me to court to lower child support....

  1. #1
    KathiM is offline Junior Member
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    How to prove capacity to earn. Ex taking me to court to lower child support....

    We both live in California. He filed false income/expense declarations with the court. I know for a fact because his Profit/Loss and IE Declaration did not match his business deposits. When I called the discrepency out in my response I received an e-mail the next day from his lawyer responding to my previous request for check registers. "he doesn't keep check registers but he printed out all this other information for you....in the course of doing so he stumbled across a discrepency between documents, and corrected and resubmitted his P/L for you. I applaud his character..." (BLECH!)

    The numbers still don't mesh and are under reported by about $7000.00 year to date. They were almost $30,000 off before! Is that enough information for the judge to impute earnings based on his business deposits, or do I have to have some other information to prove capacity to earn vs what he reports to earn.

    FWIW, I know it may not matter in court, but his parents purchased his house after the divorce so he has no rent/mortgage to be responsible for. He remarried and his new wife makes over $6000. per month, so even if by some stretch of the imagination he was earning very little money, he certainly doesn't have any incentive to quit being self employed and get a job working for someone else.
    Last edited by KathiM; 09-15-2012 at 02:31 PM. Reason: adding State information
  2. #2
    Antigone* is offline Senior Member
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    Quote Originally Posted by KathiM View Post
    He filed false income/expense declarations with the court. I know for a fact because his Profit/Loss and IE Declaration did not match his business deposits. When I called the discrepency out in my response I received an e-mail the next day from his lawyer responding to my previous request for check registers. "he doesn't keep check registers but he printed out all this other information for you....in the course of doing so he stumbled across a discrepency between documents, and corrected and resubmitted his P/L for you. I applaud his character..." (BLECH!)

    The numbers still don't mesh and are under reported by about $7000.00 year to date. They were almost $30,000 off before! Is that enough information for the judge to impute earnings based on his business deposits, or do I have to have some other information to prove capacity to earn vs what he reports to earn.

    FWIW, I know it may not matter in court, but his parents purchased his house after the divorce so he has no rent/mortgage to be responsible for. He remarried and his new wife makes over $6000. per month, so even if by some stretch of the imagination he was earning very little money, he certainly doesn't have any incentive to quit being self employed and get a job working for someone else.
    How do you know that his IE Declaration did not match his business deposits? Did you have evidence of his business deposits?

    To comment on your last paragraph - doesn't matter. Don't dwell on what his parents did for him or how well off his new wife is. When is comes to you and the children you share it does not matter one bit.
  3. #3
    KathiM is offline Junior Member
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    Quote Originally Posted by Antigone* View Post
    How do you know that his IE Declaration did not match his business deposits? Did you have evidence of his business deposits?

    To comment on your last paragraph - doesn't matter. Don't dwell on what his parents did for him or how well off his new wife is. When is comes to you and the children you share it does not matter one bit.
    I have 14 months worth of business account bank statements that he provided along with statements from two other bank accounts he owns.

    As for my last paragraph, I'm trying to figure out how to justify impunment of earnings, lack of motivation to earn more might be an argument along with the false information originally provided. I have no issue with how he lives his life, except when it comes to how it affects my kids.
  4. #4
    Blue Meanie is offline Senior Member
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    Quote Originally Posted by KathiM View Post
    He filed false income/expense declarations with the court. I know for a fact because his Profit/Loss and IE Declaration did not match his business deposits. When I called the discrepency out in my response I received an e-mail the next day from his lawyer responding to my previous request for check registers. "he doesn't keep check registers but he printed out all this other information for you....in the course of doing so he stumbled across a discrepency between documents, and corrected and resubmitted his P/L for you. I applaud his character..." (BLECH!)

    The numbers still don't mesh and are under reported by about $7000.00 year to date. They were almost $30,000 off before! Is that enough information for the judge to impute earnings based on his business deposits, or do I have to have some other information to prove capacity to earn vs what he reports to earn.

    FWIW, I know it may not matter in court, but his parents purchased his house after the divorce so he has no rent/mortgage to be responsible for. He remarried and his new wife makes over $6000. per month, so even if by some stretch of the imagination he was earning very little money, he certainly doesn't have any incentive to quit being self employed and get a job working for someone else.
    What State in the United States are you in?
  5. #5
    KathiM is offline Junior Member
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    Quote Originally Posted by Blue Meanie View Post
    What State in the United States are you in?
    Sorry for the omission.....I'm in California
  6. #6
    nextwife is offline Senior Member
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    How can you possibly know if he or wife are compensating his parents for occupying THEIR house? His parents do have every right to expect payment for use of real estate from which they could otherwise expect a cash flow.
  7. #7
    KathiM is offline Junior Member
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    Quote Originally Posted by nextwife View Post
    How can you possibly know if he or wife are compensating his parents for occupying THEIR house? His parents do have every right to expect payment for use of real estate from which they could otherwise expect a cash flow.
    His income and expense declaration states that he has no mortgage payments and no rent payments. I know his parents purchased the house because I saw the public records on the property.
  8. #8
    stealth2 is offline Senior Member
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    You could hire a forensic accountant. You could provide authoritative statistics showing what someone with his qualifications could earn. And so on and so forth.
    Last edited by m martin; 09-17-2012 at 11:39 AM.
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  9. #9
    KathiM is offline Junior Member
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    Geez...not only did I break protocol, I didn't even ask a question! SORRY!!

    My question about the I/E My ex husband says his new wife does not contribute to household expenses, yet he says that $1200.00 is paid by someone else. There is no one else living in the house. If, for example, his parents are paying this, would it be considered income?

    He claims he has had a significant reduction in income. I really just want to know if his receiving $1200.00 every month from someone who's not living in the house would constitute a reccuring gift/income vs a one time "gift" not to be counted. He has an attorney, I don't. Is this something I should wait and ask about in court?
    Last edited by m martin; 09-17-2012 at 11:30 AM.
  10. #10
    stealth2 is offline Senior Member
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    What are the household expenses he claims someone else is paying?
  11. #11
    KathiM is offline Junior Member
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    Quote Originally Posted by stealth2 View Post
    What are the household expenses he claims someone else is paying?
    On the income expense, it lists things like property tax, house hold repairs, groceries, entertainment, utilities.... he has $2400 listed as expenses and says someone else pays $1200 of them. On the top of the form it lists his new wife as the only other person living in the house and the box next to "contributes to household expenses" is marked NO.
  12. #12
    stealth2 is offline Senior Member
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    Quote Originally Posted by KathiM View Post
    On the income expense, it lists things like property tax, house hold repairs, groceries, entertainment, utilities.... he has $2400 listed as expenses and says someone else pays $1200 of them. On the top of the form it lists his new wife as the only other person living in the house and the box next to "contributes to household expenses" is marked NO.
    These are items I would expect the home owner to cover, quite frankly. I could see property tax & repairs/maintenance coming to $1200/mo in CA. So, taking that out, $1200/mo for one person for utilities, groceries, etc? $279/week...? I could see that for one person, if he isn't frugal. And then she covers her share.
  13. #13
    LdiJ is offline Senior Member
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    Quote Originally Posted by stealth2 View Post
    These are items I would expect the home owner to cover, quite frankly. I could see property tax & repairs/maintenance coming to $1200/mo in CA. So, taking that out, $1200/mo for one person for utilities, groceries, etc? $279/week...? I could see that for one person, if he isn't frugal. And then she covers her share.
    Valid point, but that is not the way that the complicated child support calculator for CA works.
  14. #14
    stealth2 is offline Senior Member
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    Quote Originally Posted by LdiJ View Post
    Valid point, but that is not the way that the complicated child support calculator for CA works.
    Wasn't really her question, though. A homeowner paying taxes & maintenance on a preoprty they own would not normally be considered income for the tenant.
  15. #15
    birdbrain53 is offline Member
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    Here's a case you might want to look up: Schlafly v. Schlafly.

    Basically the Commissioner in the case imputed income to the husband because his home was paid off and he could have rented it out for $X. Case went to appeals, appeals kicked it back and Commissioner found another justification for imputing the same amount to the husband as income.

    Not praising the decision, just reporting. It happens that I know the husband, the Commissioner was well known for his "unusual" decisions, and the Commissioner has moved from that county to mine. In Family Court no less.


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