business & child support

[tlm39]

What is the name of your state (only U.S. law)? California
If I were to go into business with one or two other people, would the value of the business be taken into consideration when calculating my child support or would only my income be considered?

 

[mistoffolees]

What is the name of your state (only U.S. law)? California
If I were to go into business with one or two other people, would the value of the business be taken into consideration when calculating my child support or would only my income be considered?

What's your status? Are you divorced? Still married? Legally separated?

If you're already divorced or never married, then the VALUE of the business would not be relevant. The earnings of the business very well could (and probably should) be considered, but it depends on the business structure.

If, for example, you set up a business as an LLC and chose reporting as a partnership, with two people owning equal percentages, and the business had earnings of $100,000, then you would each have $50,000 in income to report on your taxes - regardless of how much cash you actually received. There are a lot of other variations, so you'd have to explain the structure of the business, as well.

 

[LdiJ]

What's your status? Are you divorced? Still married? Legally separated?

If you're already divorced or never married, then the VALUE of the business would not be relevant. The earnings of the business very well could (and probably should) be considered, but it depends on the business structure.

If, for example, you set up a business as an LLC and chose reporting as a partnership, with two people owning equal percentages, and the business had earnings of $100,000, then you would each have $50,000 in income to report on your taxes - regardless of how much cash you actually received. There are a lot of other variations, so you'd have to explain the structure of the business, as well.

I will also add that when people go into business for themselves, if they are making less than they made when they were employed by others, often the judges will impute their income to what the made while employed.