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Ex is self employed. Shows low income...

bradybunch2013's picture
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My ex and I owned a business together before the divorce and I left it all to him without a fight. Wasn't worth anything anyways. He continues to run it himself. The thing is, we're going through a modification right now for custody and cs and he is claiming he only made $17,000 in 2014! He didn't submit tax returns for any years aside from 2012 when we both still owned it 50/50. That one shows his 50% was $19,660 which means his income should be close to double now that he holds 100% of the business.

How does the court figure cs if one doesn't submit his most recent returns and will the judge see that he's purposefully claiming less income (gets paid under the table) to get out of paying higher cs?

notsobad's picture

My exH tried this. He was a mechanic, self employed and claimed to make only $10K a year.

The judge looked at him, said you have 15 years experience, you are not hurt or disabled, why is your income so low? ExH mumbled something about people not having money to spend on their cars.
I'd done some research and found out that the average income of a mechanic in our province was $40 - $60K, depending on where in the province you were.
During our marriage he'd made aprox $45K but because of business write offs and a creative accountant he only showed $10K on his taxes.
The judge said that exH was underemployed and that he was basing CS on the high end at $60K. ExH almost exploded and the judge said you need to charge your customers the going rate and stop lowering your value. He never said a word about exH working under the table or cheating on his taxes, even though we all knew that's what he was doing.

I know this isn't what happens with everyone but hopefully you'll get a judge who will see through your ex's lies.

NoWireCoatHangarsEVER's picture

I hope so. BM is a hairdresser with her own shop. Her husband is an auto mechanic shop owner. They had the step kids on medicaid for a while. Food stamps too, I think. yet they live on a 20 acre horse farm and have a two story home. They are always buying something. $3000 stainless steel fridge. Took out a wall in the home for the new 60 inch 3d TV and for the pool table. Just got a $4000 leather wrap around couch. One of those Gator things that is like a golf cart. Step kids say that alone was $12,000. Last year they built a barn (a nice one), bought a horse trailer and a round pen, and ten acres next door. BM got $5000 brand new fake boobs. There was a brand new Carolina Skiff boat there last time I was there. They said they couldn't put SD on their car insurance because they already have 10 cars registered to them. SD14 had a yeti tumbler two weekends ago with her initals monogrammed on it. Off contract both kids got a new iphone6splus last month. BUT - on their taxes- after the shady accountant did his work, they made $11000 together. the year before it was $4000???? HOW the hell does that happen. I don't even know. I do know the stepkids were getting free health insurance through the state of Florida. But not free. Tax payers pay for it. Somehow someway I guess the gig was up because they were kicked off but they were for like four of the six years he and I were together. They are rolling rolling rolling in the money and are always threatened to take DD20month dad back to court for even more child support saying all their income is cash and hidden cause of the hairdresser / automechanic job and he believes them.

BUT I can say that happened to my coworker. His ex wife lives the high life and tried to tell the judge she made no money and when he saw her car and her house and all of her assets he called her a liar and made her pay her court fees and denied her adjustment.

bradybunch2013's picture

He's not living the high life by any means but that's because he has a low set of standards and is too lazy. Ee owned that business for 10 years before the divorce so i know what his potential income is and I feel like that should be taken into consideration too. If I work two jobs to make up for the small amount of cs I receive and therefore show more income than him, how is that right? My two jobs took a lot of time away from the kids and I and he on the other hand wouldn't dream of getting a second job. He'd rather spend his money on beer and cigarettes then make the house more livable for the kids when they're there.

notsobad's picture

It is possible that a judge would tell him that he is earning under his potential. That is what our judge did, we knew my ex was making much more and just trying to hide it but the judge phrased it that he was not working hard enough because he wanted to keep his CS low.

I also had an Aunt who's ex drove a city bus and wouldn't take a full time position when it was offered to him. The judge said it was fine if he didn't but he would have to pay CS based on what he would have made full time. The judge stated that there was no reason for him to not work full time. He was healthy and had no other obligations. He stated that it was obvious to the court that he was only trying to deprive his children of CS. He ended up quitting his job and leaving the province, he was a true deadbeat dad.

I know that these stories will infuriate many on here. However, there are men out there who will do anything to keep money from their ex's and don't realize it's the kids who pay the price.
There are also a lot of BM's out there who take complete advantage of judges and courts that are pro BM.

In my case I didn't receive a penny of CS for 3 years and then had to fight monthly to get the CS that was court ordered.
I never once complained to my kids that we couldn't afford something because their Dad wouldn't pay. I sat down with them and we made a family budget together. Once I started getting CS, that money went into a vacation fund and we took a fun trip every year.

SM12's picture

I have the same issue. My XH was self- employed but has not filed ANY taxes since 2006. I only asked for the minimum in CS because I knew he would never pay it anyway.
I requested assistance from the court in 2009 to help in getting what little CS was owed. It took them until 2015 to actually get him to show up in court.
He did move out of state for a year to Florida. The second he got a job in Florida they nailed him for his back CS and even increased it due to his wages. He quit his job the second the CS order came to his employer and went back to being self employed.
When we finally had the court date, the judge chewed him a new one and threatened to put him in jail if he didn't pay. He also increased it to provide for back CS.
The problem we have now is that BS will be emancipated in a few months and he is still $10,000.00 behind. Once BS is emancipated the courts will no longer ACTIVELY go after back CS. I will have to either wait until XH gets a "real job" or files taxes to have any hope of getting money.
I never discussed money with BS and never told him his dad didn't pay for anything as he was growing up.
I never wanted my child to worry about how he was going to be taken care of.
One day when he is out on his own, he will know the full story.

bradybunch2013's picture

My kids know that if they "need" something I'll make sure it happens. Whether it's through a second job or cs is not their concern. Mom always comes through. I don't have to say a word about their dad and his support or sometimes lack thereof. They are smart kids and see the truth for what it is without me saying a word.

And to be fair, the ex is timely with his current cs payments but that's because it's a fraction of what it should be and he's scared to death of going to jail over it Wink