Self-Employment and Income Reporting in Divorce Proceedings
In divorce proceedings, accurate reporting of income is crucial for determining child support, alimony, and property division. However, when one party is self-employed, it can sometimes be challenging to ascertain the true income. This article will discuss the legal implications and procedures in North Dakota when an ex-spouse is self-employed and suspected of not reporting income accurately.
Legal Obligations for Income Reporting
Under North Dakota Century Code 14-09-08.6, an obligor (the person required to pay child support or alimony) has a duty to provide accurate information about their income to the child support agency. This information must be sufficient to accomplish a review of the obligor’s financial situation. The obligor must provide an income report, earnings statements, and a verified copy of the latest income tax return.
If the obligor is self-employed, they are still required to provide this information. The income report should accurately reflect all income from the self-employment, and the tax return should accurately report the obligor’s income.
Consequences of Non-Compliance
If an obligor fails to comply with these requirements, they may be held in contempt of court under North Dakota Century Code 14-09-08.17. The court must first give the obligor a reasonable opportunity to comply with the requirements. If the obligor continues to fail to comply, a proceeding against them may be commenced by the child support agency. This proceeding must be commenced within ninety days after the obligor’s act or failure to act.
Addressing Suspected Underreporting of Income
If you suspect that your ex-spouse is underreporting their income, there are several steps you can take. First, you can request a review of the obligor’s income by the child support agency. The agency can then request information from the obligor, including income reports and tax returns.
If the obligor fails to provide this information or provides information that appears to be inaccurate, the agency can take further action. This may include seeking a court order to compel the obligor to provide accurate information or to hold the obligor in contempt of court.
Legal Remedies
If the court finds that the obligor has failed to accurately report their income, it can take several actions. These may include adjusting the amount of child support or alimony to reflect the obligor’s true income, imposing penalties on the obligor, or even ordering the obligor to serve jail time for contempt of court.
In addition, under North Dakota Century Code 14-09-08.17, an obligor who is delinquent in their child support obligation cannot renounce, waive, assign, transfer, or disclaim any interest they might otherwise claim in a decedent’s estate, a trust, or any other property. This means that if your ex-spouse is hiding income or assets, they cannot use these tactics to avoid paying child support or alimony.
In conclusion, while self-employment can sometimes make it more difficult to ascertain an obligor’s true income, the law in North Dakota provides several mechanisms to ensure that income is accurately reported and that child support and alimony are set at appropriate levels. If you suspect that your ex-spouse is not accurately reporting their income, you should consult with a family law attorney to discuss your options.