Introduction
Hey there! Welcome to child support school. Today I’ll be discussing the various ways parents hide their income from child support. Before we dive into it, let me clarify this is not legal advice or an invitation to form an attorney client relationship this is purely for informational and entertainment purposes. I’m not encouraging anyone to engage in these activities. In fact, I strongly advise against doing the things in this article. So, let’s explore some of the shady tactics parents use and how you can avoid them.
Working in Cash-Based Businesses
One of the most common methods employed by parents to hide income is by working in cash-based businesses. Think about it – businesses like barbershops, restaurants, and even certain service providers like handymen or hairdressers often deal in cash transactions. Since cash is difficult to trace, it becomes challenging for the state or the other parent’s attorney to prove that they have more income than they claim.
Moreover, these individuals ensure that the cash never enters a bank account. By avoiding formal banking systems, they keep their income completely off the grid. Instead, they pay their bills with cash or use money orders, making it even harder to prove their actual earnings.
However, I must mention that this method is becoming increasingly difficult with the rise of cashless transactions and digital payments. But for now, many people still manage to hide income using this technique.
Unconventional Deals with Employers
Another sneaky way parents hide income is by striking deals with their employers. If their boss has gone through the child support system or if they’re close friends, they might negotiate an arrangement. In this scenario, the employer agrees to pay half of the salary on the books and the other half in cash. This way, a significant portion of their income remains undocumented, making it challenging to determine their true earnings.
Using Other People’s Bank Accounts
Parents who need to operate using bank accounts, perhaps due to their self-employment, often resort to opening accounts under someone else’s name. Whether it’s their girlfriend, father, mother, or sister, having the account under another person’s name creates confusion and complexity. It becomes difficult for attorneys or the state to differentiate between the actual owner’s income and the other person’s funds.
Hiding Income as a Self-Employed Individual
Self-employed individuals have even more avenues for hiding income from child support. Let’s explore a couple of the most common methods:
1. Strategic Write-offs
Self-employed people often take advantage of various write-offs and deductions to reduce their taxable income. They can write off expenses such as mileage, vehicle depreciation, and home office expenses. By strategically adjusting these deductions, they can lower their reported income, affecting their child support calculation. While not every attorney or the state has the resources to investigate corporate tax returns, this technique remains a popular way to hide income.
2. Using Corporate Credit Cards
Another trick utilized by self-employed individuals is utilizing corporate credit cards for personal expenses. They charge payments such as rent, electricity bills, dinners, and even vacations to their business credit cards. Consequently, they pay themselves a smaller salary, keeping their documented income lower than their actual earnings. This creates a complex web of finances that can be difficult to untangle without comprehensive discovery processes and forensic accountants.
A Gentle Reminder and a Call to Action
Before I conclude, I want to reiterate that I’m not endorsing any of these tactics. In fact, I strongly advise against engaging in such activities. If you’re caught hiding income, it can backfire tremendously and result in paying even more child support than if you had been honest from the beginning.
Remember, honesty is always the best policy. Instead of resorting to these illicit methods, focus on finding legitimate ways to lower your child support payments. Consider pursuing court-ordered time-sharing arrangements with your children, as it can have a significant impact on child support calculations.
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Thank you for reading through this blog post. I hope you found it informative and engaging. Stay tuned for more content like this, and remember, honesty is the key to resolving child support issues. Class dismissed!