Can child support take my rental income if I live on the property?

Tax, Legal Issues, Contracts, Self-Directed IRA 22 Replies

My ex is rather spiteful, and I'm really hoping that she doesn't have any legal entitlements to my rental properties. Theres no alimony payments, nothing special about the divorce, she's already taken all of my hard earned belongings... I am only left with child support.

Can she take my hard earned rental income in NYS?

Guess you're asking if the court would consider your rental income....I'd bet it would. Can the state require you to pay based on your income.....yes it can.

It's all income, isn't all of your income "hard earned"?

Can your ex go by and collet rents? No, not unless some judge grants such a wierd arrangement, not likely.

And, I suggest you report all of your income to the court.

Consider yourself luck to have or to have kept the rentals. :)

Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com

In a roundabout way, yes. Like Bill mentioned, she probably wouldn't be able to actually collect the rent money directly. However, if you owe child support arrears, your funds (i.e. bank accounts, tax refunds, etc) can be seized.

I dont owe any arrears or anything, and we've been divorced for some time now so its not like I had a rental property when knowing her.

How would the courts know my income from the properties?

And yes Bill, ALL income is hard earned I must agree... but especially the kind where you have invested your own hard work, money and time in order to produce it.

You might want ask your attorney so that you are prepared. Court ordered child support is messy, especially if everyone is not happy with the agreement. Child support is based on income, number of children, and host of other variables. The courts have a data program just for this purpose. Your wife and her attorney (and the DA!) will definitely be expecting you to report all your income, including rental income. You get to include expenses as well. But you can be sure if, at any time, you do not report what your ex believes to be your real income, she will report that to the courts. And then the DA goes after you to verify the income source and raise your child support contribution. This will go on for the duration of the child rearing years. Don't even think about not paying what they determine you owe. You have the legal right to object and show your own expenses and explain hardship, etc. But not paying will get you thrown in jail. This is why you need an attorney when perhaps you thought you could go without one.

All that being said, why wouldn't you pay child support based on the true and max amount of your income? It's your child right?

The courts will record an abstract judgment or whatever it's called in your area. It doesn't have an amount but alerts everyone that you have a court ordered financial obligation. If you go to buy or sell any real estate or refi, the title company will always check with the courts to see if you are current. So, again, don't mess around if you don't want it affect your business or your credit.

I'm seeing now that you posted above that you've been divorced for a while and that you are already paying child support? Like I said, if your ex is unhappy with her child support amount and knows that you have additional income you are not reporting, she can make trouble for you with the courts.

While I do appreciate your help on this, I'd rather not get into why I dont feel I need to pay top dollar to an ex that lives with her mom, dad and two sisters and doesn't do anything with her life productive other than drink and live in the ghetto, makes my son wear the same underwear for 3 days straight, avoids bathing, has a house with a floor made out wood and old worn out rug from the 80's etc. I've been paying what I owe and am well versed in the laws on what happens if you dont, but thank you for your concern.

Yes exactly. Support's already been thru court and I've been paying in a timely fashion ever since. I'm just wondering if somehow she can go after my rental income or even find out I'm making it.

As far as I know, once the court makes the support order its a done deal unless you or her go back to the court seeking an adjustment to the original order. So yes, she could request the court to reassess your income and adjust the support order according to the findings.

Originally posted by Matt M:
Yes exactly. Support's already been thru court and I've been paying in a timely fashion ever since. I'm just wondering if somehow she can go after my rental income or even find out I'm making it.

Both you and your ex can ask the courts to change the ordered support amount. If you experience a change in income or major hardship expenses, you can make the request. If your ex thinks you're not reporting income or thinks her amount is too low, she can make a request. The courts investigate the claims. That's where it gets messy as they can request tax returns and bank statements, etc. Unless you're hiding the rental income, it would likely surface during an investigation. But again, you would be allowed to report expenses to offset the income.

If the child is in an unhealthy environment, physically or mentally issues, call your child support services and have them make a determination. OTH, if they are just poor, that's not a reason so much to go back to court. You can always go back to court for physical custody. Probably need to ask your attorney about these issues...

Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com

So in other words, theres no way the state can really prove if I'm receiving rental income or not... and neither can child support.

I've tried showing the court my kid shouldn't be living there, I've shown them pictures of their garage that was being supported by a 1980's van thats been abandoned for years, pictures of the concrete stairs that are falling apart and my kid falls on them all the time, the house is drafty because there's no siding etc... they all live like scumbags. She has a good job, she just doesnt do anything with the money or its mismanaged anyhow. I digress; welcome to NY where the law doesn't care because I'm the father and I MUST be a dirtbag.

Originally posted by Matt M:
So in other words, theres no way the state can really prove if I'm receiving rental income or not... and neither can child support.

I would assume you are including Rental Income in your Tax Returns ??
(If not your ex may be the least of your 'worrIRS'. )
The court usually insists on you submitting several years of returns if there is a dispute or demand for higher child support payments.
good luck

Well if I dont submit rental income on tax returns, say I'm only renting to 1-2 people in a unit I live in... I think the IRS would be hard-pressed to realize I'm making any additional money worth taxing?

Originally posted by Matt M:
Well if I dont submit rental income on tax returns, say I'm only renting to 1-2 people in a unit I live in... I think the IRS would be hard-pressed to realize I'm making any additional money worth taxing?

Sure, you can not report the income on your tax return. That's simply tax evasion. No big deal.

As we discussed in your other thread, that actual NET rental income is probably minimal and possible even negative. The IRS WILL see the 1099's from your mortgage company. Perhaps they won't figure out you've been filing incorrect returns. Perhaps they will.

Jon Holdman, Flying Phoenix LLC

A 3-person dwelling or smaller is just a normal "house" according to mortgage and insurance companies.... its not like a 10-unit dwelling where everything has to be done aimed towards an apartment or multi-dwelling complex.

so are you saying that *legally* my ex can only collect off of the net income? Because typically child-support goes by gross...

I don't think Matt M's thinking is straight. I would NOT suggest hiding money from your Ex, because then you will be hiding money from the IRS.

They can make your life worse than your ex.

My advise would be to play by the book and not compound your mistakes.

Matt M Is your ex on welfare? If so, you WILL pay child support, and they can lien anything, including licenses, etc., in addition, there is no limit on the amount the state can charge in interest and penalties for child support due.

If you think the state and IRS cannot find your real estate, you are taking a big gamble. Everything is computerized, and many agencies cross reference information.

The other day I got a $1200 bill for a business license because when we first moved to southern California we got a post office box in Newport Beach. Though we no longer live there, and only receive mail there, my fictitious business name has that address. Newport Beach (a City) is linked to Orange County records, thus the bill. I don't have to pay it, but ... it's not a matter of "if" the IRS, Child Support can get your money... it's when. Better to do things above board and you won't have to worry about it.

Medium tmg  1 Karen Margrave, The Margrave Group #00636992 | [email protected] | 949‑933‑3955 | http://www.themargravegroup.com

Lol no, she's def not on welfare. she's just a money hungry scumbag with a vengence.

Matt M I can understand your frustration, but let's try to keep the conversation more on the business aspects of the situation ok? Thanks!

Medium tmg  1 Karen Margrave, The Margrave Group #00636992 | [email protected] | 949‑933‑3955 | http://www.themargravegroup.com

I'd be delighted to. So are you guys sure she can only take from my NET income and not my GROSS? Because child enforcement takes my current support order based upon my gross income and not net from my job...

Hi Matt,

You do realize these topics are indexed in search engines right??

You are discussing how to not pay possible extra child support by not showing income if the ex comes after you for more money and also how the IRS wouldn't know about extra income reporting etc.

Unfortunately resolving custody and health of a child is a complex issue viewed at multiple angles by parties with sometimes having varying filters they look through and interests. Both might say they have the child's best interest at heart but disagree on how they get there or why.

The fact that their is still animosity shows unfinished emotional business that needs to be closed out. I can understand if an ex-spouse would keep taking and taking child support and then spending it on themselves etc.

I have heard before where that is a common compliant that the father doesn't mind paying more if they knew it benefited the child and not the ex-spouse abusing the funds. Couldn't a trust be set up or a direct system where the funds are documented and used for the child by the court?? I am not even close to an expert on this but it seems your attorney could help you out with this. It's sad many times because the child is in the middle at both parties expense and is the one taking the toll and paying the ultimate price.

No legal advice

Medium allworldrealtyJoel Owens, All World Realty | [email protected] | 678‑779‑2798 | http://www.AWcommercial.com

i know its an old post but someone else might be reading for advice. Establish a trust or layers of LLC's but with all the money you will pay the government you might as well pay your children.