Child Support Issues Involving Business Owners

Child support determinations are made based on a very specific formula as set forth in the Michigan Child Support Formula Manual. Although many factors are considered when setting the amount of the obligation, the first step in this detailed calculation is to establish the incomes of each parent.

For parents who are self-employed, business owners or executives, this determination can be complicated. These individuals may have different business expenses and perquisites ("perks") that are part of the equation to determine incomes.

If you are a parent who is concerned about your child support rights and obligations, contact Kraayeveld Law Offices, P.C., in Grand Rapids at 616-426-9644 for detailed advice about your particular situation.

What Types Of Compensation Can Be Included?

The Michigan child support guidelines formula specifically address the issue of child support determination involving business owners, executives and parents who are self-employed. Although this list is not exhaustive, some of the types of monetary and nonmonetary compensation that may be considered in an income determination include:

  • Management or consulting fees, commissions and bonuses
  • Distributed profits or payments from profit-sharing
  • Nonmonetary fringe benefits such as access to a skybox or season tickets, personal use of a company car or complimentary day care services
  • Redirected income, including personal loans and purchases made on company credit cards
  • Salaries paid to family members that exceed the fair market value of the work or services
  • Some business-related expenses that are tax deductible, like rent, depreciation, home office expenses and travel expense reimbursements

The rules governing the determination of income are complicated, which is why it is only prudent to discuss your individual circumstances with a lawyer.

Rest Assured That Your Children Receive The Support They Deserve

If you are a parent who is planning on filing for divorce from a business owner or another individual who earns income under special circumstances, you need an attorney who thoroughly understands the child support formula. We do. Contact our law office at 616-426-9644 or contact us immediately using our online form.