Shanti
newbie
Reged: 10/29/11
Posts: 36
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I was married for 20 years in California. We have three children, I never worked outside the home and have no college degree or anything. My husband and his father own a business. They have the business sense before the marriage. My husband bought a yacht for almost 500k thru his business about 5 years ago. Due to the economy his business is underwater and his boat " sinking" too because we own more than its value.
He makes $47.000 a year. The business pay for our gas, car insurance, office supply, some restaurants bills and paid for our cars.
In his divorce agreement he is offering a lifetime alimony of $500. 50% custody plus child support based on the income tax. However the income tax doesn't reflect reality as the business pays for some expenses. He wants me to pay for half the yacht with the proceeds of selling our house. There is no mortgage in the house.
I want alimony and child support to be based on the 45k plus the $4000 a month that he pays on the Yacht.
Can a judge consider the yacht payments part of my husband’s salary?
Can my husband force me to pay for the yacht that even thou it is in his name the business pays for its mortgage and slip fees?
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Goodmom
Pooh-Bah
Reged: 06/17/07
Posts: 2015
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Since your stbx's business owns the yacht, you are not on the hook for any debt associated with it. If your stbx pushes the issue, then start asking for your share of the business assets. That will probably shut him up about the upside down yacht.
BTW, if you insist on the yacht payment being considered part of his income, then you are going to have a hard time saying that the business (which is pre-marital since it was started before the marriage)owns the yacht and any debt associated with it. As for the other household expenses that he is paying through the business, you need to create a spreadsheet and list what he is claiming as income. And then add all of the household expenses that are being paid through the business to the spreadsheet (do not add the yacht payment as your argument is that the business owns that since it was bought through the business)and then you will have his true income.
However; if an attorney tells you that the yacht is not part of the business assets, then you most definitely can make the argument for adding the $4K to his income. Because it IS income.
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Shanti
newbie
Reged: 10/29/11
Posts: 36
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Thanks for your response Goodmom.
To clarify, the yacht is in my stbx's name but he never made a payment with a personal check only the business pays for it.
The business is in debt too so I don't think he would care if I ask for the business assets. In the beginning of the negotiations he wanted me to pay 50% of the business debts, plus 50% of the boat. But then removed that from the agreement....perhaps an attorney told him that I don't have to pay the business debts.
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hanzblinx
enthusiast
Reged: 08/13/10
Posts: 380
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get a job. I know that's asking too much for a woman, but seriously, you are not some baby sucking on the nipple. You are a grown woman with a brain between the ears, we presume.
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spinnerdegrassi
Carpal \'Tunnel
Reged: 08/20/06
Posts: 7952
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Well the alimony will be based off his income, the 47k. So you won't be getting much. You're not going to get credit off business expenses.
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Renny
addict
Reged: 09/24/11
Posts: 479
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I responded on the other thread. I suggest you have an accountant look at the books and determine his true income -- and his potential for income as the economy recovers.
The yacht payments could be considered income and have nothing to do with the separate debt on the yacht or the debts of the separate company.
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Goodmom
Pooh-Bah
Reged: 06/17/07
Posts: 2015
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[quote]Well the alimony will be based off his income, the 47k. So you won't be getting much. You're not going to get credit off business expenses. [/quote]
Actually, if personal expenses are being paid through the business (which, according to what the OP wrote, is happening), then the $47K is not the income that will be used as that is not accurate. And if the yacht is considered marital property, then the $4K payment that is being made through the business WILL be added to the stbx's income. As it IS income to him.
Judges aren't stupid, they are aware of how easy it is for a self-employed person to disguise income as business expenses.
Which is why they will accept a reasonable estimate. Creating a spreadsheet of all known expenses being paid through the business and adding it to the income is a reasonable estimate. And HAS worked in getting closer to the actual income used in support calculations.
Where it becomes tricky is when modifications are done years down the road where that information isn't easily known by the ex of the self-employed person anymore.
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Miranda
Carpal \'Tunnel
Reged: 06/02/05
Posts: 20822
Loc: North of Mexico
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If the yacht will be considered marital property, according to your theory, then the 4,000 a month payment and upside down loan amount, is also hers. Not just the "income" portion of it.
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13.1...because I am only half crazy!
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Goodmom
Pooh-Bah
Reged: 06/17/07
Posts: 2015
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[quote]If the yacht will be considered marital property, according to your theory, then the 4,000 a month payment and upside down loan amount, is also hers. Not just the "income" portion of it. [/quote]
Her stbx is the one who is wanting to treat the debt on the yacht as marital, but treat the payment of the loan as a business expense. He can't have it both ways. If it is a business asset, then the payment would not be added to his income. But if it is handled the way he wants it handled, then the payment is added to his income. Along with the other personal expenses that are being paid through the business.
BTW, even if it is considered marital, it is doubtful that the negative equity will be taken into consideraton unless they actually sell the yacht. Typically, the person who gets the asset gets the debt associated with it and any negative equity doesn't factor into anything at all unless the other party agrees to it.
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DedicatedDad
veteran
Reged: 09/05/04
Posts: 1318
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For all we know, the business is a million dollars underwater, and even with the $4K/month yaht payment, the boat might be upside also. Accurate info is needed on all those facets to make any kind of assumptions.
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