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Laws regarding child support and starting a business.

Garden Grove, CA |

I currently have a case with child support services which creates a ton of issues when dealing with salary. What I don't know though is how child support is impacted with trying to start a business or being self-employed. From my understanding an LLC does block a certain amount of from being accessed by child support services, but I'm guessing not all of it, unless I assign a salary to myself. The problem with doing that is the salary is unstable and could shift dramatically from one week to the next. How does the court typically deal with situations like this?

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Attorney answers 1


There are many issues here. If you intentionally left your employment to start a business, the court could assess you the same wages as your last job. Until you "assign a salary" to yourself, your business documents are discoverable and all of your business records - ledgers - accounts receivables - financial statements etc. They will want to see your personal and business tax returns and they are entitled to see them in family law. You could have an accountant do a detailed Profit and Loss for you to use - even better if it's certified. Lastly, they could look at your expenses to get an idea of what you are averaging each month, so filling out the Income and Expense Declaration needs to be thoughtful. Good luck! Jenn