• 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.

How is a second business income/loss calculated into support owed?

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

minasmom

Junior Member
What is the name of your state (only U.S. law)? Washington

Our support agreement, which has been in effect 8 years did not differentiate between our now 19 year old and 13 year old. The support amount was a lump sum for both children.

My ex has filed for support modification after our 19 year old graduated in June and I in turn filed for post secondary support, which I later dropped. My ex purchased a new house in July and never told the court his address, so because they could not serve him they were going to drop the case.

I went to court and restarted the case in my name because I felt it fair the support be modified because my daughter had graduated. My ex has a side business of wedding photography and when the court did the support calculations they included the income from his business based on tax returns and payroll stubs.

Well, my ex decided in August to open up a photography studio. Apparently it is not going so well, because he sent in new financials requesting a lower amount showing exorbitant "losses" such as his BMW payment of $1500 a month or his new studio rent of $4500 a month.

Does the court take a second businesses monthly expenses into account when decided support? He makes $9500 a month from his job, $4200 a month from his second business but is showing a huge loss with an actual monthly income of $6500...

I mean I could go out and start a side business and buy a bunch of stuff and show a loss as well, right? I seriously hope this doesn't fly-he makes like 4 times more than my husband and I combined.
 


haiku

Senior Member
What is the name of your state (only U.S. law)? Washington

Our support agreement, which has been in effect 8 years did not differentiate between our now 19 year old and 13 year old. The support amount was a lump sum for both children.

My ex has filed for support modification after our 19 year old graduated in June and I in turn filed for post secondary support, which I later dropped. My ex purchased a new house in July and never told the court his address, so because they could not serve him they were going to drop the case.

I went to court and restarted the case in my name because I felt it fair the support be modified because my daughter had graduated. My ex has a side business of wedding photography and when the court did the support calculations they included the income from his business based on tax returns and payroll stubs.

Well, my ex decided in August to open up a photography studio. Apparently it is not going so well, because he sent in new financials requesting a lower amount showing exorbitant "losses" such as his BMW payment of $1500 a month or his new studio rent of $4500 a month.

Does the court take a second businesses monthly expenses into account when decided support? He makes $9500 a month from his job, $4200 a month from his second business but is showing a huge loss with an actual monthly income of $6500...

I mean I could go out and start a side business and buy a bunch of stuff and show a loss as well, right? I seriously hope this doesn't fly-he makes like 4 times more than my husband and I combined.
Your husbands income has no bearing on your child suppport case with your ex....

And yes, the only way to figure out the income part of the equation is to figure the losses against profits.

The judge will know what is an acceptable expense and what is not when it comes to child support purposes.
 

Find the Right Lawyer for Your Legal Issue!

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