Karen Ann Ulmer, P.C.
Pay Online
Legal & Mediation Services Call for a Confidential Consultation
P 215-752-6200 | F 215-752-6202

Self-Employed Parties and Support

It is important to take a very close look at the finances of a self-employed party in a support case. Generally, actual earnings will be utilized to accurately measure the income available for support and ability to pay. However, in a few circumstances, including at times the case of a self-employed party, earning capacity may be used instead to effectuate economic justice. For example, a self-employed party may reduce the salary they pay themselves in order to try to reduce the support obligation. Additionally, many self-employed parties claim a lot of deductions on their tax returns before reporting their net income. A portion of these deductions may be added back when the court is trying to determine a more accurate figure for income. 

Click below to read more.

Specifically, the courts may consider all the personal perks provided at the expense of the company such as cell phone, car payments, entertainment, meal, or travel expenses, country club dues, and other comparable expenses that primarily benefit the individual. These expenses may be still be permissible deductions for tax purposes but the court should consider the amount and nature of these expenses in a support case. In Commonwealth v. Gutzeit, the Defendant owned his own business and claimed entertaining, maintenance and repairs of automobiles, life insurance for himself, and even gas for his Wife's car as business expenses (180 A.2d 324 at 327). The court acknowledged that while the total sum of these deductions should not necessarily be added back in at least a part of them should be as determined from all the circumstances of the specific case to arrive at a reasonable earning capacity. 

Click here to read more on support.

No Comments

Leave a comment
Comment Information
Email us for response

Do You Need Answers?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Firm Locations

Langhorne Office
174 Middletown Blvd
#300
Langhorne, PA 19047

Phone: 215-752-6200
Fax: 215-752-6202
Langhorne Law Office Map

Doylestown Office
196 West Ashland Street
Doylestown, PA 18901

Phone: 215-348-3800
Fax: 215-752-6202
Map & Directions

King of Prussia Office
630 Freedom Business Center
3rd Floor
King of Prussia, PA 19406

Phone: 484-704-2100
Fax: 215-752-6202
Map & Directions

Jenkintown Office
610 Old York Road
Suite 400
Jenkintown, PA 19046

Phone: 267-636-0100
Fax: 215-752-6202
Map & Directions