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Child Support Question.

Started by nosonew, Sep 13, 2005, 04:33:31 PM

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nosonew

DH has been CP for 2+ years. SS is 16 this month.

State is Kansas.

BM moved after DH was given residential custody. She did get a job with comparable pay (19-20/hr).

CS was garnished from her paycheck every 2 weeks. All went smooth until this Spring.  CS stopped coming and BM stated she was off work due to medical issues beginning May 1 of this year. DH received 2 full CS checks and 1 partial since then. (She denied having short or long term disability).

With nothing in July, Aug, or so far in Sept., he emailed her and asked for an update. She stated "Will be starting a new job, will give more details when they are known".

After waiting several weeks, DH emailed her asking for info on the job. She is now working at a convenience store. She did not give any more info, and her salary is unknown. (However, if convenience stores paid 20/hr, they wouldn't have job openings all the time!) *And her DOH was 8/23/05... before her initial email stating she changed jobs.

She also owns 5 homes she rents out. She has bought a home every 2 years for the last 10 years. Buys cheap, remodels cheap, rents.

Questions:

Given the situation, will child support likely remain based on her "ability to earn" vs. what she is earning?

Is it possible to subpoena rental agreements and bank records relating to those rentals as they are very likely assisting with her income? (Have not used rental income to impute CS in the past).

If feasible...we have an attorney. Working on getting his 2nd child through college!

Thoughts? (Thanks in advance!)


socrateaser

>Questions:
>
>Given the situation, will child support likely remain based on
>her "ability to earn" vs. what she is earning?

It's up to you to prove her actual earning capacity. If she receives rental income, then that income should be part of the calculation.

>
>Is it possible to subpoena rental agreements and bank records
>relating to those rentals as they are very likely assisting
>with her income? (Have not used rental income to impute CS in
>the past).

Yes.

>If feasible...we have an attorney. Working on getting his 2nd
>child through college!

What's your attorney think. If this woman owns multiple rental real estate, then the court needs to know the extent of the assets and income. You should be subpoenaing all of the other parent's financial records.

nosonew

Thanks! We will do that! Has been my suggestion all along.

Also... when we got ONE year of her tax return, she stated a 1,000 net income for real-estate. She had 3,000 for write offs for her rentals. Doesn't sound right to me at all.

1. What info should I ask my small town attorney to ask for? (He's great, but his expertise is DUI's... LOL)

Thanks.

socrateaser

>Thanks! We will do that! Has been my suggestion all along.
>
>Also... when we got ONE year of her tax return, she stated a
>1,000 net income for real-estate. She had 3,000 for write offs
>for her rentals. Doesn't sound right to me at all.
>
>1. What info should I ask my small town attorney to ask for?
>(He's great, but his expertise is DUI's... LOL)

1. Tax returns for the past two years.
2. Check statements and copies of checks for the past 12 months.
3. Copies of the purchase contracts for all real estate currently owned.

That's where I'd start. Probably want to depose her after you look at the documents. May want the name of the tenants, so you can talk to them about how much rent they pay, so as to confirm what you're being told by the other party.

nosonew

Another thought here..

1. What if she can prove a loss on rentals? Does that decrease her income? Doesn't it work both ways?

2. What would she need to prove a loss... she has stated verbally that she "loses money" although that is very doubtful. I do know at least one of the houses is paid off...and the others should have very little mortgage.

3. Any suggestions to prove write offs? She lives in one..fixes it up...moves on...rents out the one she just fixed up. Can those improvements be considered a true deduction?

Thanks

socrateaser

>Another thought here..
>
>1. What if she can prove a loss on rentals? Does that decrease
>her income? Doesn't it work both ways?
>
>2. What would she need to prove a loss... she has stated
>verbally that she "loses money" although that is very
>doubtful. I do know at least one of the houses is paid
>off...and the others should have very little mortgage.
>
>3. Any suggestions to prove write offs? She lives in
>one..fixes it up...moves on...rents out the one she just fixed
>up. Can those improvements be considered a true deduction?
>
>Thanks

Courts rarely consider phantom income deductions like depreciation when figuring income. No one can live for free, so if she is losing money on the rentals, then she must be earning it somewhere else. Most people pay their rent by check, so the parent's checking account should show deposits. You don't need to show where income is obtained, only that it is obtained. Then it's up to the other person to show that the money is not actually income. I'd spend my efforts getting her checkbooks, names of her banks, copies of her checks and tax returns. Then I'd take all her deposits and add them up and call it income. Then I'd let her try to explain how she had legitimate expenses to offset it all. Eventually, she will be forced to admit that she is bringing in more than she's paying out. No one can run a negative balance forever, unless they're Uncle Sam.

nosonew

URGH! DH talked to attorney while I was at work... The attorney recommended we:

1. Ignore the fact she changed jobs and as long as the order isn't changed or challenged...all $$ owed will just go to arrears.
2. Wait to see what SHE does.

My concerns:

1. IF she couldn't afford the 414.00 per month... wouldn't she have already gone thru the courts for a reduction? (She has an attorney she cc's to all emails).
2. Anytime her rentals have been mentioned in case mgmt...she tries to avoid discussing it at all costs.
3. The last mortgage we knew of was 112.00 per month. Yep.. that is right, not a typo.

I told DH that we need to get her financials... to prove if she has the income or not.

What's the worst that could happen? Decrease her income and decrease CS amt? Fine. At least we would GET and KNOW what we are supposed to get right?

Thanks..

socrateaser

>My concerns:
>
>1. IF she couldn't afford the 414.00 per month... wouldn't she
>have already gone thru the courts for a reduction? (She has an
>attorney she cc's to all emails).

I would...wouldn't you? lol.

>2. Anytime her rentals have been mentioned in case mgmt...she
>tries to avoid discussing it at all costs.

This isn't a question.

>3. The last mortgage we knew of was 112.00 per month. Yep..
>that is right, not a typo.

Neither is this.
>
>I told DH that we need to get her financials... to prove if
>she has the income or not.

That's what I'd be doing.

>
>What's the worst that could happen? Decrease her income and
>decrease CS amt? Fine. At least we would GET and KNOW what we
>are supposed to get right?

If the woman actually owns 5 rentals and has one mortgage, with a $112 per month payment, then that suggests to me that she is bringing in a minimum of $3,000 gross per month in rental income. So, either the attorney doesn't believe that the properties exist, or your DH has not told the attorney about the rentals, or you need a new attorney, because no competent attorney would refuse to investigate the matter thoroughly. Not saying that your attorney isn't competent, only that it seems pretty odd to me that this isn't a big red flag.

PS. You need to start observing Mandatory Forum Guideline #10, now.


nosonew

oops sorry Soc... Thanks for the fast reply... glad we agree on this anyway... :)

THANKS!