self employed ex - how to prove income

[AnnP]

What is the name of your state? AZ

My ex owes several thousands of dollars in child support arrears & medical expenses. Although I've been awarded this money in judgments over the years, he will not pay on it.

He had been working for his friend. Now he says he's a subcontractor for his friend, not an actual employee of the friend. Judge took him at his word with no proof of his subcontractor claim. (He has a history of lying in court). As a self employed person, I can not do a wage assignment. Also, he can claim his income to be whatever.

Currently the judge is doing a child support modification. How can I prove his true income? He & his friend are very creative in business and I do not wish to have "doctored" documentation to base his earnings on.

Any help on how to handle this would be greatly appreciated.

 

[JETX]

Now he says he's a subcontractor for his friend, not an actual employee of the friend. Judge took him at his word with no proof of his subcontractor claim.

That is extremely GOOD news for you... since independent contractors have NO exemptions from seizure.

As a self employed person, I can not do a wage assignment.

Correct... but now all you have to do is to file a 'Motion for Turn Over Order' with the court asking the court to order the 'employer' to send 100% of the debtors 'account' to the court.

Currently the judge is doing a child support modification. How can I prove his true income?

Very easy. Send the 'employer' a subpoena for the entire payroll and 'employment' (or 'accounts payable') file for your debtor.

 

[nextwife]

That is extremely GOOD news for you... since independent contractors have NO exemptions from seizure.


Correct... but now all you have to do is to file a 'Motion for Turn Over Order' with the court asking the court to order the 'employer' to send 100% of the debtors 'account' to the court.


Very easy. Send the 'employer' a subpoena for the entire payroll and 'employment' (or 'accounts payable') file for your debtor.

Interesting approach. If the subs, materials suppliers, etc. don't get paid by the contractor that hired them, won't the contractor be unable to get any future jobs, stay in business, and won't the homeowner (if any) end up with mechanics liens filed against their house?

I agree this would get her one check from one job, but future checks can't happen if there will be NO gross amount available with which to cover hard costs of the next job. Obviously, if what he's providing is labor ONLY, that's one thing, but many of the contractors I know in both real estate, computer, catering and apparel production have HUGE cost-to-profit-ratios.

 

[LdiJ]

Interesting approach. If the subs, materials suppliers, etc. don't get paid by the contractor that hired them, won't the contractor be unable to get any future jobs, stay in business, and won't the homeowner (if any) end up with mechanics liens filed against their house?

I agree this would get her one check from one job, but future checks can't happen if there will be NO gross amount available with which to cover hard costs of the next job. Obviously, if what he's providing is labor ONLY, that's one thing, but many of the contractors I know in both real estate, computer, catering and apparel production have HUGE cost-to-profit-ratios.

I suspect that there is a decent shot that its labor only....because tons of employers are trying to get away with not paying social security and medicare taxes, workers compensation insurance and unemployment taxes by trying to classify their employees as subcontractors, when they clearly are not.

In fact...just as a matter of trivia, the IRS has come up with a new way to combat that. There is a new form that the employee can fill out with their tax return (sorry, I don't recall the number right off hand, its brand new) which allows the employee to pay only the normal employee share of social security and medicare taxes....and gives the IRS ammo to go after the employer.

The sad thing is that there are also employees who talk their employers into treating them as contractors in order to avoid child support or other debt garnishments, who don't understand that the extra taxes they pay would cover a big chunk of the child support or other debt.

 

[TinkerBelleLuvr]

As the accountant who files the employer's taxes, payroll etc., I am obligated to honor any child support order that comes in whether it is for an 'employee' or for a 'contractor'. I can garnish a contractor check up to 50%. Hint-hint.

 

[jbowman]

This is my situation. NCP is independent contractor in CA. I had a wage assignment order sent to the company he contracts for. They have to abide by the order just like an employer. I get a check weekly.

 

[AnnP]

As the accountant who files the employer's taxes, payroll etc., I am obligated to honor any child support order that comes in whether it is for an 'employee' or for a 'contractor'. I can garnish a contractor check up to 50%. Hint-hint.

This is my situation. NCP is independent contractor in CA. I had a wage assignment order sent to the company he contracts for. They have to abide by the order just like an employer. I get a check weekly.

My AZ judge told me that she can NOT garnish since he is a subcontractor. She asked him for proof of his claim of being self employed, he had none, & so she went on. Shortly afterwards I asked her to PLEASE do a wage assignment because he has shown years of unwillingness to pay on these judgments. She stated that she has to follow the law & she can NOT have a wage assignment established for a subcontractor.

He is working for his friend & is only telling her that he's a subcontractor to avoid having a wage assignment established. And unfortunately, it worked for him.

My judge insists that she can NOT do a wage assignment, which could possibly be true for Arizona rather than some other states?! So NOW what do I do? Suggestions please.

 

[CourtClerk]

It may be the case for AZ, and I've not read the AZ statutes, but what is the states threshold for criminal prosecution for non-support? Again, another question for an AZ attorney, or legal aid, but that could be an option.

Is a Child Support Enforcement Agency involved in this at all?