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Spouse's business income???

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tlttx

Junior Member
What is the name of your state? Texas

My wife is starting her own photography business (free lance). If she incorporates in her name only, will the income from her business count toward my net resources for child support calculation purposes? The reason I'm wondering is because Texas is a community property state. However, I don't know that this figures into the child support equation, or is just an issue in the occurence of a divorce. Any help is greatly appreciated!
 


tlttx

Junior Member
So, OK as long as separate?

So, as long as only my spouse's name is attached to the business, even though she's starting it AFTER we were married, it's totally separate from me for CS purposes?

Sorry to sound redundant... Just wanted to make sure my original question was clear.
 

NotSoNew

Senior Member
it doesnt matter that shes starting it after your married, just like if she was starting a new job after you were married, they cant use her income, as long as its only HER buisness.
 

ceara19

Senior Member
NotSoNew said:
it doesnt matter that shes starting it after your married, just like if she was starting a new job after you were married, they cant use her income, as long as its only HER buisness.
That's not ALWAYS true. Since Texas is a community property state, he owns 50% of the business. If mom could prove that DAD is receiving any type of income like dividends or profit return from the business, it could be used in calculating child support. But the wife can assign herself a "salary" and reinvest any profits above that back into the business so that dad is not directly benefiting from the business.
 
ceara19 said:
That's not ALWAYS true. Since Texas is a community property state, he owns 50% of the business. If mom could prove that DAD is receiving any type of income like dividends or profit return from the business, it could be used in calculating child support. But the wife can assign herself a "salary" and reinvest any profits above that back into the business so that dad is not directly benefiting from the business.
No, it doesn't work that way in Texas. This would only be true if OP worked for his wife in her free-lance photography business. If OP has his own job then wife's income is of no issue when calculating CS.
 

ceara19

Senior Member
jslopez711 said:
No, it doesn't work that way in Texas. This would only be true if OP worked for his wife in her free-lance photography business. If OP has his own job then wife's income is of no issue when calculating CS.
His wife's income is NOT used for CS purposes. BUT, if HE gets any profit from the business, it can be. It doesn't have to be in the form of a paycheck either. It could be dividends and profit returns from the business. As long as the wife has a set pay structure for HER salary and the rest of the profits are put back into the business, it's not a problem. But if the profits start going into their household account, half of it would be counted as HIS income.
 

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