Divorce guidance (rental property income)
Hi All
I am going through a divorce and need some expertise in terms of income determination for Alimony and Child Support. I live in State of PA.
About my situation:
I work full time as an employee and I collect a pay check (W2) which essentially pays our living expenses. My wife also works and also is an employee.
We have 20 rental properties which a handful were pre-marital.
Some of the cash flow does pay for some living expenses but not much.
How does net income from rental properties get incorporated into Alimony and Child Support considering the following:
Rental income
Expenses (excluding depreciation)
Depreciation
Principle payment (the portion of the monthly mortgage payment)
The issue I am having is I have a handful of properties on a 15 yr fixed amortization. How does the monthly mortgage payment and depreciation get handled?
I would guess, depreciation gets re-incorporated but the principle does not since it's a monthly obligation that is truly not free money? Would it get handled the same way as dividend reinvestment?
Should an average of 5 yrs be looked at since on a yearly basis property turnover changes? For example 2014 was a poor yr due to break downs, vacancy etc as 2016 was great since no major break downs and no vacancy 99% occupancy.
How should cap ex and vacancy be argued?
Is there any expenses that may be challenged (ex. Cell phone, home office or internet access)?
Any help would be greatly appreciated!!!
Kevin