I am planning on forming a C corporation to run my small consulting business and take a nominal salary that would hopefully reduce or eliminate my alimony payments.
Would a lesser income taken from this new corporation be grounds for an alimony modification?
I am unable to give you legal advice on divorce. I can give general divorce help for men, though, my knowledge is based on Indiana alimony laws where I am licensed to practice.
If you voluntarily elect to make less money and your former spouse can present evidence of your prior income, then the court may not allow you to modify your alimony on those grounds. She could argue that you are voluntarily underemployed and that you should be held to the earning standard that you were earning previously.
Where I practice, alimony may only be modified upon a showing of a substantial and continuing change in circumstances. If the substantial change in circumstances is voluntary and she can argue it was for the purpose of reducing your payments to her, then the court may decline to modify your obligation.
Remember, I am unable to provide you with anything more than divorce tips for men, so please consult with a divorce lawyer in your jurisdiction.