Legal Question in Family Law in Minnesota
Order to Show Cause for Contempt of Court for Non-Support
1) Court Orders That : John Doe appear and such
2) John is to bring copies of documents as evidence of sources of income: Fed/State Returns and attachments wage verification ledgers and so forth My Question is: Does the Business Have some confidentiality rights even though it's owner/operated
1 Answer from Attorneys
Re: Order to Show Cause for Contempt of Court for Non-Support
Thank you for your question regarding the production of income information.
Your question suggests that "john doe" is the owner of a closely held corporation -- that is, he is likely the sole shareholder and principal employee, not to mention the sole corporate officer.
If that is the case, then the corporate shell is largely irrelevant to the court in a contempt proceeding, at which the court is attempting to enforce a child support order. The corporation (or partnership, for that matter), is the alter-ego of the owner and, if controlled by him, will have to produce whatever income information the court may demand. The business entity does not have any "confidentiality rights" in that circumstance. Moreover, even if there are other employees, shareholders or partners, if Mr. Doe is a principal in the business, the corporation can be compelled to produce information about its capital structure, expenditures, salaries paid, debts, inventory and any other information that may shed some light on how much Mr. doe benefits (even indirectly) from the business. (It is possible, for example, that Mr. doe lives in a property owned by
the business. The rental value of that residence could be construed by the court as income.)
The challenge for "john doe" may be to show that business expenses and deductions are, in fact, business expenses, and that they are not inherently personal in nature.
Since jail is a possible sanction for contempt, the person responding to the contempt motion would be well advised to consult with a lawyer. It is far easier to deal with these issues before the hearing, rather than with a contempt order after the hearing.
If you have further questions, my contact information is below. Good luck, and thanks for your question.