Do judges go off tax returns of the business or cash flow analysis? Also do they always use the north carolina income calculation worksheet? Is that a safe bet to go off of? And would I reduce my income on that worksheet by any alimony awarded as well? THanks
Generally, an Affidavit of Financial Standing should be filed outlining the gross receipts and reasonable business expenses of the business. These numbers come from tax returns, P&Ls and bank statements. The reasonable business expenses will be deducted from the gross receipts to determine the business owners gross income. The gross income is then used to calculate child support. For parties making less than $30,000 combined monthly, the NC child support guidelines are used and the gross incomes are simply put into the child support calculator. If your income and the other parents’ income combined is greater than $30,000 per month, child Support is calculated based upon the reasonable needs and expenses of the children.
The court will subtract reasonable expenses from gross receipts to determine the gross income. Depreciation is not included. If the income appears extremely low the judge may consider the cash flowing through the party's personal bank account. In cases where a party uses the business account to pay personal expenses the court will consider whether the expense were actually for the business. If a party receives alimony that is paid from someone other than the other party in the child support case then it is part of their income. Otherwise it is not. If a party is paying alimony it is not subtracted from their gross income. The court will use the guidelines unless one of the parties requests a decision from the guidelines for a valid reason. The court can also deviate on its own for good reason. In that case the court will consider the reasonable needs of the children.
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