Child Support Fraud

My question involves child support in the State of: California. My sons father owns his own business but took in pay stubs as if he was just employed by that business. what are the penalties and what can I do?

There is no reason the owner of a business cannot work for that business as an employee, and take a salary.

If you wish to prove that he's hiding money in the corporation, or is taking dividends but not declaring them for purposes of child support, you can strategize with your lawyer how you might obtain financial information from the corporation to prove your suspicions. If he's paying himself a below-market salary, you can attempt to have the court impute income to him based upon what somebody in his position should be earning for the work he performs.

Quote:

---

Quoting Mr. Knowitall

---

There is no reason the owner of a business cannot work for that business as an employee, and take a salary.

If you wish to prove that he's hiding money in the corporation, or is taking dividends but not declaring them for purposes of child support, you can strategize with your lawyer how you might obtain financial information from the corporation to prove your suspicions. If he's paying himself a below-market salary, you can attempt to have the court impute income to him based upon what somebody in his position should be earning for the work he performs.

---

In fact, working shareholders of S-Corporations (for example) are actually REQUIRED to pay themselves a fair market wage. Working shareholders of C-Corporations NEED to pay themselves a wage or they end up with serious double taxation issues.