Yep. And she could succeed if she pierces the corporate veil.Florida
My ex wants to get more money out of me. Can child support go after my s corp?
It is a small business and I'm the president as well as the only employee.
I am going to disagree....or perhaps to not so much disagree, but to explain what could actually be done.Yep. And she could succeed if she pierces the corporate veil.
I am going to disagree....or perhaps to not so much disagree, but to explain what could actually be done.
You are an owner of shares in a business. S-corp on not, liens can be placed against those shares if you fail to pay your child support. Just as they can be placed against any other asset.
Since its a closely held S-corp, the court could order that a forensic accountant be allowed to audit the books of the S-corp, to determine what your real income is.
You have two types of income from the S-corp. (probably) You have the paycheck you are paying yourself, and then you have the profits that are reported on your tax return from Schedule K-1. Both of those incomes count for a child support calculation. You can possibly argue and possibly demonstrate that you are not actually taking the K-1 income out of the S-corp because the S-corp actually needs that cash, but you would have to demonstrate that with hard evidence.
If you are not cooking your books, then you should be open and upfront about everything and don't hide anything. If you are cooking your books, however mildly, you really don't want a forensic accountant auditing your books.....therefore you would be well advised to come to an agreement regarding child support.
That has a different connotation in business and tax law then perhaps how you were using it. That's why I said that perhaps I wasn't actually disagreeing..LOL However, I doubt that OP would have the slightest idea what "piercing the corporate veil" means.Psst... piercing the corporate veil. What I said.
He is entitled to child support as a reimbursement for supporting your mutual child. And this should go on your own thread. You owe child support regardless. Apparently you need to adjust your budget. If his income goes up you may find yourself paying MORE in child support. I have seen it happen.I live in California, my former spouse was awarded child support, on my w2 income . He is a real estate agent, paid through his S corp, he took his taxes showing of his $140k he only earned $30K. He has recently remodeled 3 bathrooms, new windows and purchase a $55k BMW. I can not afford the child support. How can I get the judge to see that he has the ability live without my support. I am afraid if I go back to court he will expenses out even more and I will pay more support. What can I do and what are my chances if I take evidence of his car and remodel?
It has nothing to do with whether your ex can or cannot live w/o your (child) support. It has everything to do with you obligation as a parent to support your child.How can I get the judge to see that he has the ability live without my support.
How about starting your own thread instead of HIJACKING and NECROPOSTING?I live in California, my former spouse was awarded child support, on my w2 income . He is a real estate agent, paid through his S corp, he took his taxes showing of his $140k he only earned $30K. He has recently remodeled 3 bathrooms, new windows and purchase a $55k BMW. I can not afford the child support. How can I get the judge to see that he has the ability live without my support. I am afraid if I go back to court he will expenses out even more and I will pay more support. What can I do and what are my chances if I take evidence of his car and remodel?