What is hidden income in a child support case in Brooklyn?
Brooklyn, NY – Child support can be a contested issue due to the fact that large amounts of money are at issue. The payments can also last a long time if the child is very young when the order is put in place. For these reasons, some parents may try to hide parts of their income from the total calculation of their child support obligation. Legal services from an experienced attorney are recommended whenever there are disputes over child support to avoid problems and comply with state law.
Ways in which a parent may hide income
In some cases, one parent who is subject to a child support order may do certain things to give the appearance that their income is less than it actually is. This can include transferring assets to others, not reporting income from self employment, or not disclosing the income to the court during the hearing and process to determine support payments. Lying about excessive business expenses can be another way of hiding income. As a strategic matter, this is done so that the support payments are lower, as the person’s actual income is not totally considered by the court in making a determination of the payment amount.
How is hidden income found?
This can become a very complex issue depending on the person’s finances and volume of records tied to their business and income sources. It can also be difficult to convince a judge in family court that one parent is lying and using deceptive means to hide their true income. Many attorneys will retain a forensic accountant who reviews various records from the person’s taxes and pay statements for several years prior.
Forensics and financial documents
The starting point of the analyst often includes at least 3 years of business tax returns, personal tax returns, income statements, bank statements, full disclosure of all sources of debt, and cancelled checks. The forensic expert will then have to conduct various forms of analysis on these documents to determine what dollar amounts may be missing, and the expert will also have to explain to the judge how there is likely hidden income based on what is found in the documents versus that spouse’s reporting. There may be some difficulty in presenting their findings in an easy to understand manner that will persuade the judge.
Help with family court issues
Elliot Green Law Offices is a family law firm that assists people with their cases in the Brooklyn area. Any person who is about to get divorced, have a child custody hearing, or has issues with their child support payments can schedule a meeting to talk with an experienced attorney.
Firm contact info:
32 Court Street, Suite 404, Brooklyn, NY, 11201