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#770806 - 10/12/15 01:59 AM ex-husband hides money from his 2 LLCs
singlemom34 Offline

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Registered: 10/12/15
Posts: 1
My ex husband has a full time job and owns 2 fully operational LLCs (one of which brought in over $100K in 2013 alone). Somehow, he's been able to have his child support calculated based on his full time job and nothing else. He manages to hide his business accounts from Domestic Relations. Recently, he took me back to DR for the third time this year trying to get the support lowered again. I'm working 2 jobs, over 60 hours a week - with primary custody of my daughter. How can I force him to bring his 2014 returns from each LLC to the table for calculation?

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#770807 - 10/12/15 06:19 PM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
gr8Dad Offline
Carpal \'Tunnel

Registered: 06/07/04
Posts: 31800
Not really sure I think you should be entitled to a piece of that. He is WORKING, you are getting a percentage of that money. If he is working EXTRA hard, that money should be HIS.
_________________________
Why give a "senior" discount, they have had plenty of time to raise the money...

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#770808 - 10/14/15 09:51 AM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
Goodmom Offline
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Registered: 06/17/07
Posts: 2202
You would need to take him to court and file a motion for him to provide all of his financial information regarding all sources of income.

However; it's going to be an uphill battle as it is easy to hide income when owning a business. To combat that you will need a forensic accountant. And that is expensive.

But before you consider that, you will need to read up on your state's laws. Some are shortsighted and wrongly don't include all income like they should. If your state is one such state, then your battle got more difficult. As it is likely that they will only use one source of income, usually the higher one but it's going to be expensive proving which one is higher.

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#770809 - 10/15/15 05:13 PM Re: ex-husband hides money from his 2 LLCs [Re: Goodmom]
gr8Dad Offline
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Registered: 06/07/04
Posts: 31800
How is it "shortsighted" to not include EXTRA money a person made from working EXTRA time, so they can buy EXTRA stuff?

Just curious, since you appear to think if a person DECIDES to work longer hours, the CP should get a piece of that, if an NCP choses to work LESS hours, should the CP be forced to accept LESS money?
_________________________
Why give a "senior" discount, they have had plenty of time to raise the money...

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#770810 - 10/20/15 09:27 PM Re: ex-husband hides money from his 2 LLCs [Re: gr8Dad]
oldsmom Offline

member

Registered: 06/08/15
Posts: 100
This is heavily varied between states. In my state, you can only get child support for consistent income from a solid job. I think this is a fair decision because if a noncustodial parent gets overtime for four months, and then nothing, theoretically the custodial parent could go after more child support even if it's not a proven source of regular income.

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#770811 - 10/22/15 05:38 AM Re: ex-husband hides money from his 2 LLCs [Re: oldsmom]
gr8Dad Offline
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Registered: 06/07/04
Posts: 31800
In regards to child support AND alimony, I have always found it wrong that the ex spouse gets to SHARE in the increases, but are PROTECTED from decreases.
_________________________
Why give a "senior" discount, they have had plenty of time to raise the money...

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#770812 - 10/25/15 12:01 AM Re: ex-husband hides money from his 2 LLCs [Re: gr8Dad]
SRS Offline

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Registered: 11/05/10
Posts: 2585
I took a $600/month decrease when ex lost his job due to health issues.

It was bull....he gets a pension and a retirement check from the government instead of working. I have to get my happy butt to work everyday and totally support our children. He's currently in arrears, don't ya know.

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#770813 - 10/26/15 10:11 AM Re: ex-husband hides money from his 2 LLCs [Re: SRS]
misty321 Offline

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Registered: 10/25/15
Posts: 9
Dad, it depends on the state, but in general if your "extra" jobs are a permanent feature of your life, they are viewed as part of your income. If you're working overtime now and then, or you take an extra job to make ends meet during some emergency, that's a different matter.

The other thing is an LLC can generate significant income that doesn't stem from your own work. If you have employees and they're busting humps for you, and you're taking home $60K profit each year, then yep, that's part of your income. Your children are entitled to a slice of it.

Which also means, OP, that your lawyer needs a look at the financials for the LLC. Hire a good lawyer and an accountant to go over the records and returns. If he's hiding money this is also a matter for IRS.

SRS, if your ex is in arrears, will your state support-collection agency enforce and intercept the money?

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#770814 - 01/07/16 07:03 PM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
MinnesotaMom Offline

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Registered: 01/05/11
Posts: 969
You would have to find out what the net income is of each LLC. Taking in $100K gross doesn't mean there was any profit.

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#770815 - 01/21/16 04:33 PM Re: ex-husband hides money from his 2 LLCs [Re: MinnesotaMom]
Singlemommythang Offline

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Registered: 01/21/16
Posts: 7
I had the same thing happen to me. In fact, my ex transferred his business to his girlfriend (he shut his dba down and she opened a carbon copy) to hide money from child support. I fought for 2.5 years, represented myself for 9 of those months. It was exhausting on many levels, but we proved that he did this and the Judge imputed his income to include the money from the business he transferred.
I'm sorry you are going through this. I feel for you. I've gone through it. The state department is useless in this sort of battle/discovery. If you have proof - at least a smidge - you need to get an attorney to help you. You need evidence. Actually before hiring an attorney - see what sort of evidence you have/can get.

Rachel
Singlemommythang.com

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#774342 - 02/16/18 02:34 AM Re: ex-husband hides money from his 2 LLCs [Re: gr8Dad]
BeatDad Offline
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Registered: 02/16/18
Posts: 9
[quote=gr8Dad]In regards to child support AND alimony, I have always found it wrong that the ex spouse gets to SHARE in the increases, but are PROTECTED from decreases. [/quote]

Though you find it wrong, it is the reality.
Support is essentially the tax - based on the gross income and with the floor (good luck getting CO to decrease).
_________________________
Please help! Support my son's fund here.

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#775177 - 02/09/19 05:08 AM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
dani123 Offline
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Registered: 02/09/19
Posts: 6
I have exactly the same issue at the moment with my Ex. My Ex is working for a large corporation but taking hourly rate paid on 1099 to his sister's company. How do i tell the court to consider a higher income. He is unnecessarily showing lower wage through sister's company to avoid child support payments.

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#775180 - 02/11/19 08:20 PM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
MinnesotaMom Offline

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Registered: 01/05/11
Posts: 969
More details are needed to give an answer. Does he work full time for a large cooperation and the time at his sister's job is another job, or his sister the owner of the large cooperation? What do mean by avoiding child support payments? That they don't exist or are smaller than you think they should be?

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#775192 - 02/14/19 10:11 PM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
dani123 Offline
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Registered: 02/09/19
Posts: 6
He works full time 40 hours per week for a very large Corporation. But he is not a FTE there. His siter's Company Invoices that corporation and they pay his sister's company on 1099 only for his services. The only 2 employees in his sister's company is himself working for Company A and his sister Working for a Company B(Sister's company getting paid by Company B on 1099 only for her services).

Sister's LLC issues him paystubs and W2.
So essentially, he is showing a very less wage by working out side arrangements with his sister's LLC.

This is really pathetic. I need help to defend this.

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#775196 - 02/15/19 11:06 AM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
MinnesotaMom Offline

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Registered: 01/05/11
Posts: 969
By how much do you think he is undereporting? Did he show more income in the past on his tax return? What state are you in?

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#775204 - 02/16/19 08:26 PM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
dani123 Offline
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Registered: 02/09/19
Posts: 6
He is underreporting by atleast 40000. This is obviously my assumption, but it is based on the facts how much a 1099 Contractor would paid for his job role hourly minus reasonable ss tax/medicare/employment taxes etc. We have 50-50 parenting Time. I am in NJ. He is showing even lesser than what he made last before 4 years through this business model which is nothing but intentionally underpaying himelf through help of sister's company. If many people start doing this, than there is no incentive to work for any person directly on w2. I searched a lot online but could not find a better way to combat this that's when i found this forum and posted.

Please advise

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#775205 - 02/17/19 05:50 AM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
MinnesotaMom Offline

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Registered: 01/05/11
Posts: 969
Child support will be based on his tax return. If it is less the last year, if you request, they may average the last 3 years. Finding unreported income is another story. It's very difficult to prove and usually takes a forensic accountant, and from what you described, would cost $10K or more, which you would have to pay and there's no guarantee they would find anything.

This isn't anything new. Under reporting income on a 1099 is probably the most common way folks pay less support. It's just very difficult and expensive to prove. If you haven't already, it woudn't hurt to a consult with a local attorney. Some judges may be more harsh with less evidence and an attorney would be more aware of the prevailing attitude in your local court.

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#775208 - 02/18/19 07:54 PM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
dani123 Offline
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Registered: 02/09/19
Posts: 6
I understand that its difficult to prove. But how am i preparing my case to combat it. I have full time job on a W2 and i get very minor raises since last 4 years and he is saying now i have to pay him where he is showing same old income in last 4 years

Any ideas on how do i fight best to get his income imputed?

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#775209 - 02/18/19 09:05 PM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
MinnesotaMom Offline

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Registered: 01/05/11
Posts: 969
The courts/judge would not impute from what you wrote. Imputing is done for folks voluntarily working less than 40 hours per week or purposely working a job that pays far below their working potential.

This is what I would do. I would let him know that if he insists on you paying him, act a little crazy and let him know that you don't care what it costs, you are hiring a forensic accountant to fully investigate him not reporting his earnings, which includes digging into his sister's LLC's to prove it. You can also let her know.

I suspect it will stop him dead in his tracks.

It doesn't help you get support, but it stops him from getting it from you.

Does he currently pay you or is there no support order?

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#775221 - 02/24/19 01:00 AM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
dani123 Offline
recently joined

Registered: 02/09/19
Posts: 6
Right now nobody is paying each other. But he got a very high hourly paying job on 1099 as explained and showing less on w2 and wants money from me. Now is it so hard for judge to atleast consider the last genuine income especially when i am proving that its his sister's LLC?

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#775223 - 02/24/19 10:43 PM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
MinnesotaMom Offline

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Registered: 01/05/11
Posts: 969
Only a local attorney could tell the prevailing attitude of your local family court judges. The laws are set up so they can make any decision they want under the same set of circumstances. In my state, the W2 almost always rules and you can show it's not accurate. That is up to you to prove. Good luck.

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#775264 - 03/11/19 03:28 AM Re: ex-husband hides money from his 2 LLCs [Re: MinnesotaMom]
dani123 Offline
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Registered: 02/09/19
Posts: 6
Ok so i met an attorney and they said you can request to get the income imputed such that the party had this job which paid this money until this date, working with his sisters company is intentionally underemploying and hence impute income per current wages in state/county or last income whichever greater.

do you think this is something i should be pushing for? how easy or difficult is to achieve the above?

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#775265 - 03/12/19 07:12 PM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
MinnesotaMom Offline

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Registered: 01/05/11
Posts: 969
Are you saying he used to have a higher income (on his tax return) before working for the sister's company?

If so, how many years ago would be the most important factor.

It's up the judge, but if it was more than 3-4 years ago, the chances of success is probably low. If less than that, a judge may very well impute this income to his former level.

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#775312 - 03/27/19 06:32 AM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
Denrick Offline
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Registered: 03/25/19
Posts: 2
It's quite easy to get into your hands a court decision on the recovery of alimony from your former spouse and a writ of execution based on this judicial act. The responsibility to pay funds for the maintenance of children is enshrined in law. Despite the fact that the judicial system meets the requirements of the mother with whom the child lives, to get the execution of the decision is a very difficult task. It easy and faster obtains with the professional lawyers.


Edited by Denrick (03/27/19 06:36 AM)
_________________________
The https://goldmann.group/en/ help to protect child interests after divorce.

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#775315 - 03/28/19 05:57 PM Re: ex-husband hides money from his 2 LLCs [Re: singlemom34]
MinnesotaMom Offline

old hand

Registered: 01/05/11
Posts: 969
More spam from some probable loser company dying to get into your checkbook.

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