Mothering Forum banner

1 - 9 of 9 Posts

·
Registered
Joined
·
232 Posts
Discussion Starter · #1 ·
Just a question for anyone who's BTDT?<br><br>
What if your ex has his own corporation and just pays himself a very small annual dividend (on paper). Like, if the corporation earns $250,000 but retains the profits and pays out $30,000 to him personally? Do the courts just base CS on the $30,000? Also, if the corporation is in his name only, do you have any rights to its assets in the divorce settlement?<br><br>
Note - I am married, and pray to stay that way forever because I love my husband and so does my 2.5 y/o DD. But I am a little scared because we've had some rocky times and DH has occasionally given me the impression that he might not stick around. I'd just like to know how vulnerable I am, especially as we are expecting another babe in a couple months. I couldn't return to my former career even if I could bear to leave my kids at a daycare, because I worked out of oilfield camps in the bush for crazy 100ish hour weeks.
 

·
Registered
Joined
·
1,047 Posts
I don't have experience with your situation, but the most obvious advice would be that you should make copies of any documents that prove the income of company and that he is the person running everything. I am willing to bet that the courts would take into consideration the fact that he is the owner of a corporation.<br><br><br>
Good luck and I hope that you don't need to ever use this advice!
 

·
Registered
Joined
·
1,829 Posts
If you live in a "joint property" locale, wouldn't ownership of the corporation be considered part of the assets to be divided in the event of a divorce?
 

·
Registered
Joined
·
5,000 Posts
I think an attorney would be the best to give advice, maybe also a postnup but that would be likely to freak your hubby out.<br><br>
If anything, keep a diary that documents your standard of living, with as many receipts as possible so you can prove to the court if you need to how things really were.<br><br>
Also make copies of tax statements and income taxes and social security etc in a place only you have access too. Keep on top of finances, my abusive ex filed electronically and wouldn't give me copies of taxes, and actually intercepted tax returns and kept them away from me when I mailed for copies. If your ex is secretive or withholding or does all the finances and doesn't allow you access those are red flags<br><br>
Maybe pick a future career you'd love and take steps toward getting there regardless of the state of your marriage.
 

·
Registered
Joined
·
232 Posts
Discussion Starter · #5 ·
<div style="margin:20px;margin-top:5px;">
<div class="smallfont" style="margin-bottom:2px;">Quote:</div>
<table border="0" cellpadding="6" cellspacing="0" width="99%"><tr><td class="alt2" style="border:1px inset;">
<div>Originally Posted by <strong>pranamama</strong> <a href="/community/forum/post/9047872"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">If anything, keep a diary that documents your standard of living, with as many receipts as possible so you can prove to the court if you need to how things really were..</div>
</td>
</tr></table></div>
That's probably a good plan. Off the top of my head, this year I know he bought a $57,000 car, a $14,000 camper, a $5,000 horse, over $5,000 in parts for his monster truck, etc.... I don't know how his accountant manages to keep our income looking so low.<br><br><div style="margin:20px;margin-top:5px;">
<div class="smallfont" style="margin-bottom:2px;">Quote:</div>
<table border="0" cellpadding="6" cellspacing="0" width="99%"><tr><td class="alt2" style="border:1px inset;">
<div>Originally Posted by <strong>pranamama</strong> <a href="/community/forum/post/9047872"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">Also make copies of tax statements and income taxes and social security etc in a place only you have access too. Keep on top of finances, my abusive ex filed electronically and wouldn't give me copies of taxes, and actually intercepted tax returns and kept them away from me when I mailed for copies. If your ex is secretive or withholding or does all the finances and doesn't allow you access those are red flags</div>
</td>
</tr></table></div>
I <i>am</i> in the dark about our finances, but I don't think he is actively hiding them from me. That's just how we have always operated, as a couple. When I used to have a well-paid career, I just managed my own money and he did his.<br><br>
Thanks for the good advice,<br>
-KCMommy
 

·
Registered
Joined
·
49 Posts
<div style="margin:20px;margin-top:5px;">
<div class="smallfont" style="margin-bottom:2px;">Quote:</div>
<table border="0" cellpadding="6" cellspacing="0" width="99%"><tr><td class="alt2" style="border:1px inset;">
<div>Originally Posted by <strong>KCMommy</strong> <a href="/community/forum/post/9037914"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">Just a question for anyone who's BTDT?<br><br>
What if your ex has his own corporation and just pays himself a very small annual dividend (on paper). Like, if the corporation earns $250,000 but retains the profits and pays out $30,000 to him personally? Do the courts just base CS on the $30,000? Also, if the corporation is in his name only, do you have any rights to its assets in the divorce settlement?<br><br>
Note - I am married, and pray to stay that way forever because I love my husband and so does my 2.5 y/o DD. But I am a little scared because we've had some rocky times and DH has occasionally given me the impression that he might not stick around. I'd just like to know how vulnerable I am, especially as we are expecting another babe in a couple months. I couldn't return to my former career even if I could bear to leave my kids at a daycare, because I worked out of oilfield camps in the bush for crazy 100ish hour weeks.</div>
</td>
</tr></table></div>
I was in the exact same boat as you. My ex made over 150k and claimed he did not. He lived at home with his mom and claimed poverty. I am not remarried and have a wonderful husband. I think you should go through your local district atty because it can cost you more to try to collect than if you just got the $$, KWIM? I spent over 40k trying to collect and I am still owed more than 40k in arrears. The DA wont charge you. The most important thing anyway is the custody. As long as you have the child.. the money is secondary, IMO.<br>
I think it depends on what state you are in. My ex had an S corp. I got a good attorney and requested that the court appoint a forensic accountant in order to get a more accurate support order. The court approved it, however I settle out of court he was willing to settle rather than to have them go into his accounting.<br>
My advice to you .. if your marriage seems rocky to you is to take half of the support amount and put it in a savings for your DC. If your DH is a decent guy, he wont mind that as it is the practical thing to do. If God forbid something should go wrong.. you are have a small amount in savings. If things go well.. your DC has $$ in the bank for the future<img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/smile.gif" style="border:0px solid;" title="smile"><br>
hope that helps!
 

·
Registered
Joined
·
2,997 Posts
<div style="margin:20px;margin-top:5px;">
<div class="smallfont" style="margin-bottom:2px;">Quote:</div>
<table border="0" cellpadding="6" cellspacing="0" width="99%"><tr><td class="alt2" style="border:1px inset;">
<div>Originally Posted by <strong>guardandolaluna</strong> <a href="/community/forum/post/9052218"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">I think it depends on what state you are in. My ex had an S corp. I got a good attorney and requested that the court appoint a forensic accountant in order to get a more accurate support order. The court approved it, however I settle out of court he was willing to settle rather than to have them go into his accounting.</div>
</td>
</tr></table></div>
Definitely try to do that. If he's paying himself "under the table" out of the corp. profits, that's illegal. The legal guidelines surrounding corporations are pretty clearly defined. He can't use the corporation for certain benefits (like the financial protections it provides) and then treat it like his personal piggy bank (like he could with a sole proprietorship).<br>
There are a lot of sole stockholders with privately held corps who do abuse the system like that. I would think that any decent attorney would push for an audit before setting CS.
 

·
Registered
Joined
·
49 Posts
oh! I forgot to add... here is the kicker... the court ordered $2500 of HIS (the ex) money to be froxen to use as a deposit for the accountant!!! He was sooooooooo mad. lol
 

·
Registered
Joined
·
7,439 Posts
I would also urge you not to sign any tax returns if you are concerned thag he is committing tax fraud. If you have no income reported on the return, you do not need to sign. If you DO sign, you can be held 100% responsible for anyt arrears he might end up owing due to his fraud. I have a friend who got royally screwed this way (and her ex also owned a business that suddenly stopped making any money once she filed for divorce.) Anyhow, she will be paying off his tax bill until she dies, probably.
 
1 - 9 of 9 Posts
Top