Higher income than fiance who pays child support

[bobbitim]

What is the name of your state? NY
his ex Wife works and is not on public assistance of any kind.
My fiance pays child support currently.Our annual incomes are about equal.
We would like to get married and have ambitions of buying a business that he would primarily be responsible to run w/ my assistance in book keeping. This business would be his new sole income. Iwill con't to have my income from my current employer. The general household and his personal finances will benefit from the income from this new business, but his adj annual gross may be considerably lower then his current gross being employed by someone else.
1) Can ex sue him for child support based on household income to include my annual income?
2) If we incorporate or Form a LLC will it protect us and any new combined assets?

3) Should all assets and finance be maintained seperatly?
thanks for any advise
bobbitim

 

[stealth2]

You are not responsible for helping support his child. However, you should both be aware that his lower income due to being self-employed will NOT result in a downward modification of his support obligation as it will be a voluntary decrease. You should both give serious thought to that.

Also, be aware that any joint assets (including the business and joint accounts) will be liable to liens should he begin to accrue arrearages due to an inability to pay the full amount if the business doesn't provide him adequate funds.

 

[bobbitim]

Thank You

Dear Stealth2:

Thanks for your quick reply.. sounds like good advise. We will be getting a lawyer/ financial planner and we anticipated he would con't to pay current orders. I make $$ and didn't want him to have to pay more from this household because of it. I am raising 2 boys on my own with a small CS contribution.

 

[bobbitim]

Joint asets

You are not responsible for helping support his child. However, you should both be aware that his lower income due to being self-employed will NOT result in a downward modification of his support obligation as it will be a voluntary decrease. You should both give serious thought to that.

Also, be aware that any joint assets (including the business and joint accounts) will be liable to liens should he begin to accrue arrearages due to an inability to pay the full amount if the business doesn't provide him adequate funds.

What if business is in my name as a sole proprieter or S corporation and he is 1099'd annually.Or leases the equipment from me and maintaines his own books? am I assuming liability for his debts or does the liability still fall on him to report those wages to NY SCU.

Looking for best way to protect my assets from not any EX( I'm one of those), but one who waits like a snake and lets it be known ahead of time she is out to just cause him any financial grief she can.

 

[LdiJ]

What if business is in my name as a sole proprieter or S corporation and he is 1099'd annually.Or leases the equipment from me and maintaines his own books? am I assuming liability for his debts or does the liability still fall on him to report those wages to NY SCU.

Looking for best way to protect my assets from not any EX( I'm one of those), but one who waits like a snake and lets it be known ahead of time she is out to just cause him any financial grief she can.

As long as your husband pays the ordered child support, your joint assets will never be at risk. Therefore, the best way to protect your assets is to ensure that the child support is paid faithfully.

You are never going to be liable for his debts...its only that if he falls into arrears (and doesn't clean them up quickly) that liens can be placed against any asset that carries his name. That also includes your home if you own one.

Certainly having an S corp or an LLC that elects to be treated as a corporation, would provide some protection. His stock would be at risk, but if you hold your stock separately yours would not. The business assets would also be protected in that case.

However, in order to avoid being accused of fraudulently shifting income around to show him having a lower income, it would be wise if the corporation or LLC paid both of you salaries that are comeasurate with the work you provide to the corporation or LLC.

 

[bobbitim]

thank you

As long as your husband pays the ordered child support, your joint assets will never be at risk. Therefore, the best way to protect your assets is to ensure that the child support is paid faithfully.

You are never going to be liable for his debts...its only that if he falls into arrears (and doesn't clean them up quickly) that liens can be placed against any asset that carries his name. That also includes your home if you own one.

Certainly having an S corp or an LLC that elects to be treated as a corporation, would provide some protection. His stock would be at risk, but if you hold your stock separately yours would not. The business assets would also be protected in that case.

However, in order to avoid being accused of fraudulently shifting income around to show him having a lower income, it would be wise if the corporation or LLC paid both of you salaries that are comeasurate with the work you provide to the corporation or LLC.

Showing the lower income wouldn't matter regarding his CS obligation because we do not plan on filing for a reduction of the current CS order.
We were put in by NYS during a custody battle. during their seperation he had always paid privately without arrears and on time. His ex is agreeable to go back to private now that she won the custody battle and they have agreed on a set amount.