Child Support (Mod)

[TPK]

Soc,

Weeks back I posted that my income was going to change from 2003 to 2004. I own a subchapter S Corp, thus the company profits filter thru me so the co. doesn't get taxed and it's a lesser % personal rather than corporate.

The co. took a loss in 2004, we have just gotten the numbers back from the accountant for me and the business. This loss means my income has been greatly decreased. The CS I'm paying (not ordered from bench) was based on income for 2003. CS will now be cut in 1/2 going by NY's 17% of the gross income CS laws.


I know wife will dispute this, but it's all there on paper and we did not cook the books either.


1. Can the NY court base CS on a 3 year income average?

Wife's attorney awhile back suggested a forensic financial evaluation might happen. I say let them do it, I'm not hiding anything.

2. Would I have to pay for the forensic eval??..or part of it??

3. Will I have to show co. tax returns for 2004??...or should I voluntarily do it?

4. Being that CS is not court ordered yet, should I expect trouble now that I'm cutting it in 1/2 based on 2004 income??

Cheers

TPK

[socrateaser]

>1. Can the NY court base CS on a 3 year income average?

The court must base support either your actual income or your earning capacity. Three years ago, is arguably too far removed to be an accurate measure of your current earning capacity, especially as you would not have had any reason to cook the books to avoid support until you knew that your wife was leaving you.

>2. Would I have to pay for the forensic eval??..or part of
>it??

Generally, the person seeking an expert opinion, must pay for the expert. But, if your wife wins on the issue, then the court would likely order you to contribute to the cost of her expert witness fees.

>
>3. Will I have to show co. tax returns for 2004??...or should
>I voluntarily do it?

You will almost certainly be required to produce corp tax returns for 2004.


>4. Being that CS is not court ordered yet, should I expect
>trouble now that I'm cutting it in 1/2 based on 2004 income??

You should expect that your opponent and the court will cast a suspicious eye on your reduced income -- circumstances being what they are.

[TPK]

>
>>4. Being that CS is not court ordered yet, should I expect
>>trouble now that I'm cutting it in 1/2 based on 2004
>income??
>
>You should expect that your opponent and the court will cast a
>suspicious eye on your reduced income -- circumstances being
>what they are.

1. Is it possible that the court would actually not believe my tax return numbers?

2. Would it be up to my opponent to prove the tax return wrong?

3. Have you seen spouses turn each other in to the IRS over something like this?

My income has stayed the same over the last few years. 2004 was the 1st year we showed a loss which seems like a coincidence now that I'm divorcing and thus would benefit from fudging the numbers to suit.

I have nothing to hide, she'd waste money chasing this.


I tried to give her the reduced CS in person tonite and that went over about as well as a turd in a punchbowl. She refused the CS, and a heated exchange soon followed.

Thanks Soc!

TPK

[socrateaser]

>1. Is it possible that the court would actually not believe my
>tax return numbers?

No, but the court can be convinced that your depreciation numbers are unreasonably high, and/or you are leasing too expensive of a vehicle, and/or that you are paying yourself too low a salary, etc.

>2. Would it be up to my opponent to prove the tax return
>wrong?

No one is likely to doubt your tax return -- just how you've stated your Balance Sheet and P&L.

>
>3. Have you seen spouses turn each other in to the IRS over
>something like this?

No, because if you get hammered, then the other spouse's income stream drys up.