• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Brankruptcy to follow divorce

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Bummerific

Junior Member
What is the name of your state? Tennessee

If, at the end of a divorce, one spouse files for bankruptcy on his business and gets a 40 hour a week job so that way his total income is lower and thus his child support payment will be lower, would this look bad on him. In terms of a judge finding out. Could he be repremanded? Can anything be done?
 


nextwife

Senior Member
Did the business fail? Maybe the business could not sustain the salary he was previously paying himself?

Your attorney could have the books audited to see if the business loss was warranted.
 

Bummerific

Junior Member
The business is making more money than it has ever. He said he was going to file for bankruptcy on it just to lower what he has to pay in child support. If he is audited it will show that not only was the business profitable but he was not paying the proper taxes. Can there be anything done to prevent this? Or if it does happen can there be anything done to penalize him for doing it just to lower his child custody payment.
 

nextwife

Senior Member
Would the business have been profiitable if he WAS paying the proper taxes?

And just because that is what he said the reason for the bankrupcy was, obviously to tick you off, doesn't necessarilly mean that this is actually the REAL reason he is filing bankrupcy. Bankrupcy is pretty extreme. Could be that his male ego wouldn't allow him to tell you the REAL reason he's filing bancrupcy. Nobody dramatically lowers their own income just to make a reduction in CS. That's like leaving a good paying job just because one wants lower income taxes - it's all proportionate.
 

Bummerific

Junior Member
It is not me and someone else, It is my friend and her "soon to be ex." I have seen the bank statements and I have seen his tax forms. He has 11k that I can not account for.

He owns his own construction company, doing side jobs and other things. Perhaps he told my friend that he was going to file for bankruptcy just to tick her off, but it did not. It bothered me because a man was going to "turn his back" on his children. So I took it upon myself to look up what could be done if he were to file for bankruptcy.

I am sure you have met some kind of people that would do ANYTHING in their power just to seek vengenance on someone. No matter at what costs. This guy is one of those type of people. He WOULD quite his job just to save a few bucks just because he is PISSED off that he can not control her any more and she is leaving. But hey...maybe I should just stay out of it?
 

nextwife

Senior Member
Well, if you haven't seen his current accounts payable, you can't REALLY know the financial state of the business. Might he have LOST a major account or two that his business depended upon? That could change the financial picture from one year to the next. I have real estate developers among my customers, and when a certain large developer went bust, several of his sub contractors went bust as well, as they got a lot of their business from this guy.
 
Last edited:

Bummerific

Junior Member
I have seen the books. I have 10 years restaurant management experience. Yes they are not the same as being in construction, but P&L's are almost the same. Money coming in and money coming out. With all the books I have seen, his bank account has 11k that can not be accounted for. Taking in consideration the debts that they had (cars, house, utilities) at most they should have is around 1200 in the bank. Maybe. But in his own personal checking account, not the business one. There is 11k extra that I can not find out where it came from. BUt I have just seen his books. Maybe he has something on the side
 

nextwife

Senior Member
Well, many of us entered our marriages already having our own savings, securities and other accounts that we have kept as seperate property. Could the 11K be premarital assets that he has maintained seperately??
 

LdiJ

Senior Member
There are people out there who have left their jobs....or given up their businesses just to be spiteful when it comes to child support. We all know that happens. Yes, they are cutting off their own noses to spite their faces when they do that....but it still happens.

And yes....people with their own businesses often cheat on their taxes. Again, that's quite common.

However, if the business is profitable....and does not have debts in excess of assets/income....then he won't be allowed to file bankruptcy. He can certainly close the business and get a regular job....but he can't file bankruptcy.
 

pammness

Member
Ifs

Bummerific said:
What is the name of your state? Tennessee

If, at the end of a divorce, one spouse files for bankruptcy on his business and gets a 40 hour a week job so that way his total income is lower and thus his child support payment will be lower, would this look bad on him. In terms of a judge finding out. Could he be repremanded? Can anything be done?
If a bullfrog had wings he wouldn't bump his butt on the ground
If he does this simply out of spite and a judge finds out, IF he was able to go through with the bankruptsy, which I doubt but IF so, and he's proven to have done so just to get out of paying the court amount for child support. He can face charges for whatever laws he broke to do so , and also be held to the $$$ amount of the child support.... as it stood prior to his actions to try to change it.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top