Want to start a business will my ex get more child support?

[firzout]

What is the name of your state? Fl

I recently remarried. My current wife and I would like to open a business. We are fixing her credit due to her ex-husband leaving her with all their previous debt. We already lost one opportunity to open one business. We are thinking how opening the business in my name (my credit is in good standings) and as soon as her credit is better, we would transfer the business into her name. My ex-wife uses the child support money for her own use. I still buy my children additional clothe and supplies that stay at our home. We would hate to put all of our hard earn time and money into a business and have the ex-wife enjoy the benefits because my child support would increase. Would this be something we can consider without me being hit with an increase in child support? Please advise. If there are other options I'm all ears.

 

[mommyof4]

Well, yes, no, and maybe.

When you first start your business, your child support will remain the same, even if you are earning less. You have shown that you are capable of earning $X, therefore, you will still be expected to pay the child support as if you were still earning the same amount.

If, once the business is off the ground and profitable and you have a substantial increase in income (it varies by state, but most are around 20%) then she could file to modify child support based on your new income OR it could be modified at the 3 year review.

If your income remains roughly the same, the CS would stay roughly the same.

Putting the business in your wife's name will not get you around child support enforcement, if tha is what you are thinking. You have no control over how she spends the child support as long as your child(ren) are fed, dressed, have a roof over their heads, and have all the basic necessities.

 

[firzout]

Maybe I should be more clear. We both hold full-time jobs. I've been paying child support for the last 5 years. I've been remarried only a few months. My wife's income would not be used for the child support because I pay for everything my children need out of my account only (advised by my divorse attny long ago) What we want to do is start a business aside from our current jobs. My question is to parts I think. One if I start a business in my name can I then sell it to her (in a few month) after we finish fixing her credit. Without my ex-wife going after me for increase in child support because I owned a business for a few months and it's clear that it's owned by my wife. Secondly, would I be able to keep a business loan in my name and sell my wife the business so the business in in her name? I will continue to pay my current CS from my full time job.

 

[jbowman]

IMO, a court would thnk this was a tactic to hide income--regardless of whether you keep your current job or not. Your business, if profitable, will bring in more money--putting it in your wife name is an attempt at being sneaky and hiding assets. Just do the right thing.

 

[wondreing]

Are you and your wife going to be running this new business? If you work there you would probably be expected to make some sort of income and that should be included when figuring out how much child support you should pay.

 

[Gracie3787]

Maybe I should be more clear. We both hold full-time jobs. I've been paying child support for the last 5 years. I've been remarried only a few months. My wife's income would not be used for the child support because I pay for everything my children need out of my account only (advised by my divorse attny long ago) What we want to do is start a business aside from our current jobs. My question is to parts I think. One if I start a business in my name can I then sell it to her (in a few month) after we finish fixing her credit. Without my ex-wife going after me for increase in child support because I owned a business for a few months and it's clear that it's owned by my wife. Secondly, would I be able to keep a business loan in my name and sell my wife the business so the business in in her name? I will continue to pay my current CS from my full time job.

In Florida when a NCP has a second family, the income from a secondary part time job is exempt from use to determine CS, only if the secondary income is needed to support the second family. Since your wife will be taking over the business within a few months, this *should* fit your situation, but consult with an attorney just to make sure.

 

[firzout]

I thought this was advise from law individuals. Some comments are merely opinions. It's not being sneaky. My wife's income is not used to determine my CS. She was not around when the "children's life style" was determined and my CS calculated, for that reason I pay for everything when it comes to my kids, she pays nothing, this way her income could never be used to calculate CS.
I am just looking for answers as far as starting the business in my name then changing it over to my wife. The question is not after it's in her name. I know that the business in my wife's name would not be calculated. I also know if I have a second income of my own that might or might not be included. What I would like to get answers for is if I start the business can the judge use does few months to dictate new increased CS although it is no longer in my name?
Anyone can say "oh you are just trying to be sneaky" but the judge has to follow the law as it is written, not their personal opinion.

Also, does anyone know if I can have a loan in my name and the business in my wife's name?

 

[Gracie3787]

I thought this was advise from law individuals. Some comments are merely opinions. It's not being sneaky. My wife's income is not used to determine my CS. She was not around when the "children's life style" was determined and my CS calculated, for that reason I pay for everything when it comes to my kids, she pays nothing, this way her income could never be used to calculate CS.
I am just looking for answers as far as starting the business in my name then changing it over to my wife. The question is not after it's in her name. I know that the business in my wife's name would not be calculated. I also know if I have a second income of my own that might or might not be included. What I would like to get answers for is if I start the business can the judge use does few months to dictate new increased CS although it is no longer in my name?
Anyone can say "oh you are just trying to be sneaky" but the judge has to follow the law as it is written, not their personal opinion.

Also, does anyone know if I can have a loan in my name and the business in my wife's name?

Read the "Important Notice" at the bottom of the page. It clearly states that consumers post here, yes there are some attorneys who post, but most of us are not attorneys. All of us, however, have had alot of experience with legal situations where we have learned the laws. So, in an effort to help others learn from our experiences we voluntarily, without pay, post and assist others.

You have recieved excellant advice from me and others. Yes, you can start a business in your name, then "sell" it to your wife. Yes, your ex has the right to file for a modification based on the business income, but filing, and winning are 2 different things. I have told you what the Fl law is concerning secondary income- to read it you can go to www.flsenate.gov/STATUTES, in chapter 61.

It is possible that a Judge would view your starting a business and then putting it into wife's name as an attempt to hide income. Mostly it will be a matter of timing. For example- if you start the business, your ex does not file to modify, you put the business in wife's name, then 6 months to a year later ex files, it should not be considered as hiding income. However, if you start the business, your ex files to modify either before, or right after you put into wife's name, a Judge can consider that to be hiding income. This is where the law I mentioned comes into play as your defense to both an increase and any allegation of hiding income.

You said- "...but the judge has to follow the law as it's written, not thier personal opinion."
I used to think the same thing, and although it should be that way, unfortunately Fl is full of Judges who don't care what the laws are and quite often order things based on what they think, not what the laws are. The best thing you can do at this point is to either wait until wife can start the business in her name from the get-go, or take your chances that you will not get a biased Judge.

 

[LdiJ]

There is another option. If its truly his wife's business, and he is putting it in his own name due to credit issues, then he can "loan" his wife the funds necessary to start the business. In other words, it can be in her name from the get go, but use his credit.

However, if its a business that they are both going to be involved in, then he can just admit that half of the business is his, and half is his wife's, and accept any child support calculation that might end up resulting from that.

 

[TigerD]

Or the point that everybody seems to be missing. Most small business start ups lose money, reducing your income.

Second, even when the business starts making money, a good accountant will help you take every possible deduction. The odds are you will have several years before it really starts affecting your reportable income.

DC

 

[firzout]

Thank you all , We will use this information to determine our action/plan.