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.
To arrange an initial consultation to discuss divorce rights for men with a Cordell & Cordell attorney, including Noblesville, Indiana Divorce Lawyer Sara Pitcher, contact Cordell & Cordell.
2 comments on “Modifying Alimony By Starting A New Business”
divorcing a lawyer
I ran a business for me and my wife she was 95% owner now she is divorcing me after a bad injury to my back, income taxes showed I made about 3100.00 on a good year she has kicked me out of house and rented another for her. She is not following the GLA’ advice on visitation. She has cleaned house out. She makes about 300,000.00 a year. does anyone have advice
I was laid off from my last job, and have been unemployed for four months. A company wanted to hire me as an Independent contractor, so I had to set up my own company, and thus am giving myself a nominal salary, and the rest goes to running the company. Would this allow me to get my child support reduced, or actually now she would have to pay me since I am making less than her and we have 50/50 custody.