Legal Question in Family Law in Massachusetts

Negative Cash Flow on Corporate Business

My ex-husband just finished his orthopedic surgery fellowship and started a private practice. I am trying to get my child support modified but he is stating in his financials that his is losing $3,600 a week BUT he is paying out monthly salaries and benefits exceeding $20K a month of which he has only one employee (his new wife) a medical transcriptionist. He states he has no salary yet purchased a $575K house last month. Will the judge see through this charade that he is paying his wife what should be his salary yet he is claiming a loss on his corporation? Is there a salary that they would use to determine what he ''should'' be making in order to increase my whole $60/week child support payments for my two young sons? Thanks!


Asked on 8/28/06, 8:44 pm

2 Answers from Attorneys

henry lebensbaum Law Offices of Henry Lebensbaum (978-749-3606)

Re: Negative Cash Flow on Corporate Business

This is a tough one. I believe that to convince a judge that your ex is creating a fiction, you are going to need an expert accountant to evaluate the practice. This is not something that the average person can analyze or disect. For instance, what if your ex actually needs an employee, and he would pay another person the same or similar amount of money? Another questions is what expenses are typical to run the practice and generate income? How are the books being kept? Is cash being handled the same as other forms of payment. To get to the answer is going to require an effort. To produce the effort it is going to require an expenditure of money. You have to weigh the costs and benefits of this pursuit. This is a personal/business decision. SHould you have any more questions, please call my office.

Read more
Answered on 8/28/06, 10:16 pm
Maria Murber Law Offices of Maria Murber, PC

Re: Negative Cash Flow on Corporate Business

The prior attorney's response is right on the money. Just to add a little further thought, the fact that he bought a $575,000 home recently (of course, try to bring some proof of this)will raise red flags with the judge because that is a significant purchase and yet, he cannot pay child support? You should go to the registry of deeds Northern/Southern Registry of Deeds and get a copy of it for your proof. You can usually pull that information up online, but it may be more official if you get copies from the registry of deeds and certified.

You may want to consider consulting with a family law attorney. Good luck! Maria Murber

Read more
Answered on 8/29/06, 5:36 am


Related Questions & Answers

More Family Law, Divorce, Child Custody and Adoption questions and answers in Massachusetts