My question involves child support in the State of: Michigan
My daughter's father has been paying $435/month in child support forever and I finally filed for a review. He reported his personal income as $31K and the child support recommendation was a reduction to $377/mo. He's a business owner, so needless to say, I objected. Last week we went to a hearing in front of the referee and it was revealed that his business has retained earnings of over 700K with net income of over 100K. So, the support ended up being based off of $131K and the outcome was a $900/mo increase . However, his attorney objected stating the referee didn't take into account that in order for the 100K to be used for child support it would have to be taken in the form of dividends and therefore taxed again on his personal income tax. The referee was a bit reluctant to do so but he did run the numbers again and apply taxes to the $100K. The bottom line of that calculation was an increase of $700 a month, so $200 less than the first amount. At the time, I went ahead and agreed with that amount but now after thinking about it I plan to object again. He has been cheating my daughter for many years and now as it's approaching time for her to go to college she needs to get everything that she's due.
Before I go back to court and fight for the additional $200/mo for her, I just need to be sure that there's no risk of the judge reducing the amount of the order if her father already agreed to the $700 a month increase at the referee hearing. The referee seemed really appalled that he's been retaining such a large amount yet only paying a measly $435 to take care of his daughter. His house and vehicle are paid for, so I'm sure he's got a substantial bank account. He has NEVER done anything extra for my daughter and has only given her birthday or Christmas presents about 5 times in her life.
She really wants me to pursue the additional money because it will help for college. Let me add that he lives 20 minutes away from his daughter and hasn't seen her in almost 2 years. He and his wife have a son that's two years younger than my daughter. He gives him the WORLD and treats my daughter like she doesn't exist. It is so shameful!
Ok, now to my questions. Should the calculation take taxes into account even if he's not taking the net income as dividends and he has retained earnings of over 700k. Basically, he's just keeping all of his money in his business and that makes most of it untouchable for child support purposes. Can the court request copies of his bank statements to prove that he can afford the additional child support even if he doesn't take the net earnings from his business?

