What is the name of your state? WI...my hubby and i own a small business. i pay child support for 1 son. we took out a 2nd mortgage to help finance our business. our accountant suggested i take withdrawals against the "note" to get some of our money back AND to help in taxes. my ex is requesting last 2 year tax returns and recent pay stubs to try to get more support. my question is...since i technically haven't taken a paycheck should i make copies of my checks which are for the "note" given for the business? it's been about 6 months since i have received a "paycheck". the payments against the notes are for the same amount as the paycheck would be (net amount) and write a blurb explaining this? also...can i request copies of his last 2 years tax returns as well?
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small business income
- Thread starter teejay
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Normally when the other party requests tax returns, a self employed person, would supply thier 1099's, thier income tax return, and a profit and loss statement. your income is figured on what is left AFTER business expenses, not on the checks you write to yourself. All of which your accountant can help you with.
Of course you can also request your ex's income information as well. normally in a child support review both parties resubmit thier income.
Of course you can also request your ex's income information as well. normally in a child support review both parties resubmit thier income.
haiku-small business income response
haiku-thanks for your response..that makes sense...i have another question now too..i'm assuming this is brought to a head as the child support office sent out letters stating right to review, etc...anyway, the hearing is 600 miles away and would be really hard for me to make it....is this something that i need a lawyer to go or will the judge just review the numbers and make a determination?
haiku-thanks for your response..that makes sense...i have another question now too..i'm assuming this is brought to a head as the child support office sent out letters stating right to review, etc...anyway, the hearing is 600 miles away and would be really hard for me to make it....is this something that i need a lawyer to go or will the judge just review the numbers and make a determination?
I am not sure for you,as I am in a different state. Usually support reviews are a simple matter of showing the financials and using the state guidelines. BUT, I always feel it is best (especially as a self employed person) to show up at court, at all costs. if a question comes up and you are not there to clarify, something might not go in your favor, The person who shows up gets more respect.
Since my husband became self employed, we discovered that they will scrutinize your reports more, and it is very, very wise to have your accountant Do the paper work for you.Self employed people have very bad reputations in court, due to the dishonesty of some. And NEVER go to court without a lawyer. (people can disagree all they want-but to me a good lawyer is worth thier weight in gold in a court room)
As self employed people we consider it part of the expense to protect our business, to pay for an excellent accountant-business lawyer, and keep his divorce attorney, when ever the need arises.The expense of travel for one day of court could prove worth it in the long run.
Also your acountant can help you figure out what in the business belongs to your husband as income. I take a small salary as the bookkeeper that is mine alone in our business.
I know in my husbands state, support can only come under review every 3 years unless a major change in circumstance happens. The last time it came up for review, we had it put in the new papers that in the future,the person asking for the mod would be responsible for all court fees arising if they lost.
Since my husband became self employed, we discovered that they will scrutinize your reports more, and it is very, very wise to have your accountant Do the paper work for you.Self employed people have very bad reputations in court, due to the dishonesty of some. And NEVER go to court without a lawyer. (people can disagree all they want-but to me a good lawyer is worth thier weight in gold in a court room)
As self employed people we consider it part of the expense to protect our business, to pay for an excellent accountant-business lawyer, and keep his divorce attorney, when ever the need arises.The expense of travel for one day of court could prove worth it in the long run.
Also your acountant can help you figure out what in the business belongs to your husband as income. I take a small salary as the bookkeeper that is mine alone in our business.
I know in my husbands state, support can only come under review every 3 years unless a major change in circumstance happens. The last time it came up for review, we had it put in the new papers that in the future,the person asking for the mod would be responsible for all court fees arising if they lost.
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advice from accountant
haiku...original state (of decree) is KY...i spoke to my accountant. here's some particulars...the business is 100% in hubby's name-not mine..my last "paycheck" was june 2001..first he says that since the business is 100% in hubby's name that I cannot supply a profit and loss statement (?) i should supply last two years returns w/ W-2's and a letter stating due to economic downturn i have not been able to collect a paycheck from my hubby's business....my W-2 from hubby's business will reflect a salary and i do have another W-2 from 1999 employer in this state that shows about the same (if not less) wage. he suggests i include that to show that i didn't quit other job to work for free at hubby's business. i believe i currently make about 3.00 hr less than i did when child support was originally set and hubby has since retired w/ full benefits AND works full time AND has rental property. hopefully all of this will show he's much better off than i am! what do you think of the accountants advice?
haiku...original state (of decree) is KY...i spoke to my accountant. here's some particulars...the business is 100% in hubby's name-not mine..my last "paycheck" was june 2001..first he says that since the business is 100% in hubby's name that I cannot supply a profit and loss statement (?) i should supply last two years returns w/ W-2's and a letter stating due to economic downturn i have not been able to collect a paycheck from my hubby's business....my W-2 from hubby's business will reflect a salary and i do have another W-2 from 1999 employer in this state that shows about the same (if not less) wage. he suggests i include that to show that i didn't quit other job to work for free at hubby's business. i believe i currently make about 3.00 hr less than i did when child support was originally set and hubby has since retired w/ full benefits AND works full time AND has rental property. hopefully all of this will show he's much better off than i am! what do you think of the accountants advice?
do you have a family lawyer currently? you would need to run all this by them too. My concern now would be your proving that you are not hiding income, "by quitting a real job to work for the family business".I am not saying you are, just what the other party may try to say. They may attempt to impute income on you, or try to include your husbands business income as that is what you are actually "living off of".
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