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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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  #1  
Old 03-09-2018, 11:30 PM
Acadia71 Acadia71 is offline
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Default Rental property in a corporation CS?

I'm sure I will get flamed for this, but I'm going to ask it anyway.

I currently own one rental property, it is a 4-plex that I plan to move into because my support payments are very high and I need the money.

I currently pay $5000 per month CS/SS combined and I have the kids half the time. We used imputed incomes for the first 3 years and then agreed to review child support. I have a strong income but she refuses to work more than part time and is working for an old friend, likely getting paid some in cash. So when we review my support will likely go over $6000.


Having said that I want to buy some rental properties, I plan to keep them in a corporation, and never take any income from that corporation until AFTER my kids turn 18......will this effect my child support amounts?? Is there any reason I can't basically hide money like this?
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Old 03-10-2018, 09:50 PM
piggybanktoex piggybanktoex is offline
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You know you need to talk to a family law lawyer and an accountant for that answer.

I hope you can do it. It's not like you aren't supporting your ex & kids.

And, of course, the ex is doing all she can to help.
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Old 03-10-2018, 10:41 PM
rockscan rockscan is offline
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Why didnt you have a clause about ss ending in your agreement?

She could hire a forensic accountant to go over your income from your corporation and have an income imputed to you as a result based on what you could be earning regardless of how much you pay yourself.

And if you dont want to get flamed, dont ask about hiding money.
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Old 03-11-2018, 11:37 AM
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Rioe Rioe is offline
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The solution is not to be unethical with your own income, but to prevent your ex from taking advantage of you due to her own unethical behaviour. You should have an income imputed on your ex that is more accurate to what she could and should reasonably be making. What would her income be if she was working full-time and reporting all her cash income? Is that as good as the income she could be making if she worked in her field instead of for a friend?

It sounds like you are paying SS because of your income disparity or history of supporting her (which I think is crap, but it is what it is), and the amount you pay should be fixed based on the incomes you had during the marriage and at the marriage breakdown. It shouldn't change with any subsequent rise in your income unless that was foreseen during the marriage and influenced her career choices. Depending on your system, you may be able to impute an income to her there too, which would affect your SS amount.

As for CS, that's based on the offset system as you have 50-50, and therefore it fluctuates with BOTH your incomes. However, it is completely unreasonable for her to be underemployed or hide income, so that your CS amount increases in proportion. Your CS is not meant to supplement her own lack of income.

Parents of children should always be working to their full capability, and not taking advantage of the other parent.
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