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How to Calculate the Child Support Obligation of a Self-Employed Parent

While determining child support may appear to be rather straight-forward, challenges often arise when one spouse tries to disguise what their true earnings are when they receive benefits other than just a regular paycheck. If you have a self-employed spouse, not only might you consider retaining the services of a forensic accountant, but insist that your attorney does a thorough job with discovery in an effort to arrive at a fair and equitable support order.

As an example, here are five ways that income can pass "under the radar":

1. Your spouse may set-up a "straw" employee such that money is paid to a non-existent employee. It is not uncommon for such checks to be voided after the divorce or modification matter is resolved. Our attorneys often take the deposition of the payroll supervisor in order to lock in their story.

2. In order to show high expenses, and low(er) profits, your spouse may show money paid from the business to someone close - such as a father, mother, girlfriend or boyfriend - for services never rendered. In such cases, the money is returned to the party after the divorce is final.

3. Some spouses delay in signing long-term business contracts until after the contested divorce or modification matter goes to judgment. Although this may appear to be smart planning, the intent is to lower the value of the support order. As such, this practice is considered hiding assets and income and looked down upon by the court.

4. In some cases, the expenses listed on a spouse's financial statement are considerably higher than the reported income would support. In this case, the court would welcome a detailed analysis of personal lifestyle, spending patterns and cash flow in order to assist the judge in arriving at an equitable support obligation. Think about it: there are all aspects of compensation to determine actual income including travel, meal and auto allowances; bonuses; retirement contributions; commissions; insurance and payment of personal expenses, etc.

5. If your spouse is in a business or industry where there is considerable variation in income due to seasonal employment, overtime, second jobs, bonuses, or profit sharing, etc. you're well-advised to taking a two- or three-year average over a consistent period when such variation exists.

If you find yourself confused about how to address the issue of support with a self-employed spouse, contact us for no-obligation at (800) 910-DIVORCE.

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Once Divorce Begins, Don't Let Your Spouse Press Your Buttons

Once the divorce process begins, it is not out of the ordinary for litigants to make comments with the hopes of intimidating, upsetting, or causing stress for each other. Additionally, not only is it not uncommon, but it's really easy - after all, think about it: because of the close relationship, and how well each of you knows each other, it's a simple talk knowing which remarks to make that will cause the maximum response on the intended "victim."

The typical remarks we hear about (and subsequently explain to our clients in the attempt to calm their worries) include:

"I'm going to drag the case on forever. By the time we're done, you'll have nothing - and I'll see to it that it ends-up that way!"

"I've got the best lawyer in town. He (or she) is going to crush your lawyer."

"Your lawyer is a well-known crook. He (or she) is only dragging this out in order to get money that should be going to the kids."

"My lawyer knows all of the judges. There's no way that you'll get a good result - give up now!"

"I'm going to get custody of the children, move, and you'll never see them again...mark my words."

"I'm going to tell the children the real truth about this divorce and they'll learn who you really are."

"You can't trust the lawyers - they're all friendly with each other and they're taking our money."

It is often said that retaining a Divorce Dream Team goes a long way in building a strong case in court, and our attorneys will tell you how there is rarely any basis for these comments. Their only purpose is to provoke the opposition. Don't live with needless emotional stress and anxiety. Ignore your soon-to-be ex-spouse, recognize the motivation behind his (or her) comments, and focus on the divorce issues that matter.

Learn more by listening to our Divorce Seminars or reading about how to deal with your ex-spouse.

Contact us about your legal matter today!









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