Forming a Company and Child Support

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Forming a Company and Child Support

Unread postby Dad_in_Ohio » Wed Apr 05, 2017 3:20 pm

Hi all, long time no talk. Since its been a while, I have 50/50 custody and school residency for my children. I pay my ex child support based on W-2 income. I have been divorced for 6 years.

Over the last six months I have been putting together a real estate investing company. I am starting my first two flips and should be profitable this year. I have a few questions:

1) Do I need to let Child Support Agency know about the business? I have not left my W-2 job. Right now this is a side business

2) Can my ex go after profits from my business to increase child support? I have no problem paying anything for my kids, never missed a payment and never will, but considering I have them half time, my child support is already considerable.

3) If she can go after profits, can she only go after what is on my income tax return?
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Re: Forming a Company and Child Support

Unread postby astrolink » Wed Apr 05, 2017 4:16 pm

Dad_in_Ohio wrote:3) If she can go after profits, can she only go after what is on my income tax return?


This is what most agencies use as their basis to calculate support.
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Re: Forming a Company and Child Support

Unread postby lionel2013 » Wed Apr 05, 2017 4:23 pm

Can my ex go after profits from my business to increase child support? I have no problem paying anything for my kids, never missed a payment and never will, but considering I have them half time, my child support is already considerable.


Depends on what the OH statute stipulates, the formula by which CS is calculated. As long as you exchange W-2's and other tax forms with X, she could ask for additional CS based on new income.

Unfortunately the measure you call "considerable" does not come into play until you hit a very large number, and you would need to consult an attorney for that. In IL, a wealthy MD successfully argued on appeal that 20% of his $800,000/yr income is excessive as CS. But that was in IL, don't know about OH.

I too think that the roughly $28,000/yr I pay in CS is excessive, but IL courts think otherwise ...
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Re: Forming a Company and Child Support

Unread postby spritom » Tue Apr 11, 2017 5:45 pm

Depends on what the OH statute stipulates, the formula by which CS is calculated.


Bingo.
CS income is not the same in a number of states as IRS income.
Some states you can work occasional overtime and not have it as part of CS
Other states add up any pennies you might have dropped in the toilet.

A quick glance is that Ohio might be more of the penny-grabber where ever it can find it.

Ohio's .gov site (and a might difficult to read)
http://codes.ohio.gov/orc/3119

Easier to read, but it would need vetting to doublecheck they don't have outdated info, etc.
http://www.cornwell-law.com/02/what-cou ... t-in-ohio/
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