What should I Expect Now

[Rockingronishere]

First, I don't know were we or I would be without this Forum and i thank all the volunteers for that. We have been separated for 4-5 months now and i think i have been doing all the right things with the help of this Site, No lawyers are involved yet, we are so far on good speaking terms. We have 2 children, my son of 15 is with me and my daughter 12 is with her mother, we were married for almost 20 years. Sold the house used the remaining to pay off Dept. It gets a little sticky now, My Ex started a company about 2 years ago and is just starting to bring in income. during those first 2 years she had no income we used my income and credit to start up the business, i'm not sure what her take home pay is currently. I am paying CS, probably to much but i am not worried about that now. So the question of the day is, Now i am making more that she is and paying the correct CS,,, What happens when she is bringing in say 3 or 4 times my salary in a couple of years, I know the company she started will be very Successful and i put allot of money into it, I'm thinking my son and I should be
sharing the company's success.

[ddol1]

not sure about partnerships but as husband and wife there may already be some form of "contract" to which your investment makes you a partner in theis business. My understandding is this business is or should be valued as on the date of seperation and at least you own half. If you can show that it was your money (not your income because in marriage income is automatically assumed to be divided equally between the spouses regardless who earned it.

But if you look at this as a form of enrichment to which you were the contributor there could be a call for you to own more than half of the business now at the date of seperation. This is just gut feelings from what I read but once you can establish that fair share between you and the actual value of the company today and you take yours - whatever work, blood sweat and tears your ex puts into that business rightfully would belong to her in terms of profits (or losses) after the date of seperation.

Your best bet is to consult not a family lawyer but a business lawyer that understands this process and the contractural obligations arrising out of the marriage and if you can prove it - if the bulk of the front money in effect belonged solely to you and did not come from a pool of funds that your ex would be by rights equal owner to the funds in the first place. Only other comment is the issue of debt which you do not indicate if there is still any oustanding debt with your credit on the line........ If you approach your local business group - you may be directed to the very specific business and contractural info you need before you can honestly settle your family law issues.

Family law lawyers have a tough enough time settling family law issues - they do not (more than likely I would believe) or probably do not have even the qualification to comment on the issue from a legal standpoint - but that will not stop one from trying!!! I am fairly sure your son does not have any legal standing in the way of a partnership in this business - this is strictly between you and your ex.

[Rioe]

Originally Posted by Rockingronishere

My Ex started a company about 2 years ago and is just starting to bring in income. during those first 2 years she had no income we used my income and credit to start up the business, i'm not sure what her take home pay is currently. I am paying CS, probably to much but i am not worried about that now. So the question of the day is, Now i am making more that she is and paying the correct CS,,, What happens when she is bringing in say 3 or 4 times my salary in a couple of years, I know the company she started will be very Successful and i put allot of money into it, I'm thinking my son and I should be sharing the company's success.

The company should be taken care of by way of equalization. It sounds like you can prove it was a marital asset, so at the time of separation, you were entitled to half the value of the company, minus any start up debts. Then your interest in the company ceases. You should definitely make sure your name is off any documentation and loans, etc.

What she has done with it since will be up to her, and the difference in incomes and any changes will be reflected in CS. Make sure you have a clause in your separation agreement about CS being updated annually to reflect changes in income.

As you each have custody of a child, you should be using the offset method of calculating CS. That means you take what she should pay you based on her income, and what you should pay her based on yours, and subtract the difference. The higher earner pays the lower earner the difference. Then, each year, you exchange tax info and adjust the following year's CS based on the previous year's income. So as her income increases if the business is successful, your son will benefit through increased CS.