TN Trucking Co Owner Denied Deduction Buying Trucks for Child Support

Tennessee law case summary on income determination and deductions for depreciation for capital expenditures in Tennessee divorce and family law from the Tennessee Court of Appeals.

Ely v. Ely – Tennessee Child Support Case Summary – Trucking Company Owner

Suzanne  and Kenneth Ely were divorced in 1988. They entered into a marital dissolution agreement (MDA) which provided that Mr. Ely would purchase the wife’s interest in a trucking business they jointly owned and operated.

After the divorce, Mrs. Ely filed contempt proceedings on three separate occasions against Mr. Ely for failure to comply with the MDA.  Each of the three petitions alleged Mr. Ely had failed to pay his share of the medical expenses for the children, but the third petition also alleged that there had been a material and substantial change in circumstances since the divorce which justified an increase in Mr. Ely’s child support.  Mrs. Ely claimed that he was self-employed at the time of the divorce as the sole owner of Ely Trucking Company.  His business and income increased since that time. Mrs. Ely alleged she was entitled to an increase over and above the guidelines due to the fact that Mr. Ely had vested with the parties’ children less than the amount provided by either the guidelines or the final decree of divorce. Continue reading

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TN Considers Deductions for Captial Expenses for Self-Employed Obligor

Tennessee law case summary on child support in Tennessee divorce and family law from the Tennessee Court of Appeals dealing with deductions from income for captial expenses and depreciation for self-employed business owners.

Tennessee considers deductions from income for captial expenses and depreciation for self-employed business owners.

Tennessee considers deductions from income for captial expenses and depreciation for self-employed business owners.

Kimble v. Kimble – Tennessee child support laws

Nina and Michael Kimble were married in 1985 and divorced in 1992.  When they married, Mrs. Kimble had a son from a previous marriage, and Mr. Kimble had a daughter.  Mr. Kimble adopted the son, but his ex-wife did not adopt the daughter.  The divorce decree incorporated the terms of a marital dissolution agreement (MDA) which provided that Mr. Kimble would pay child support of $250 monthly for 24 months.  At the end of that time, the trial court stated that it would not be necessary for Mrs. Kimble to show a material change of circumstances when petitioning for an increase in child support, because Mr. Kimble had begun a new business and his income was uncertain at the time of the decree. Continue reading

Tennessee Child Support Income Not to Include Corp’s Retained Earnings

Tennessee law case summary on reasonable retained earnings not included in income for child support in Tennessee divorce and family law from the Tennessee Court of Appeals.

Piper v. Andrews, 1997 WL 772127 (Tenn.Ct. App., 1997).

Barbara Andrews Piper and Donald Andrews divorced in 1989.  Mrs. Andrews was awarded custody of the couple’s two minor children.  Mr. Andrews was ordered to pay $600 a month in child support.  Mr. Andrews now lives in Texas, and Mrs. Andrews lives in Tennessee.  Mrs. Andrews sought an increase in child support based on her ex-husband’s income from a closely-held corporation of which he was the sole shareholder.  In addition, Mr. Andrews’s visitation was less than the standard under the child support guidelines.

Since the divorce, Mr. Andrews had become the sole shareholder of a closely held corporation.  Mrs. Andrews argued that because all of the corporation’s income would inevitably go to Mr. Andrews, the trial court should set child support based on his increased salary and compensation package, as well as the corporation’s annual income.  The trial court held a hearing on the petition. It heard testimony regarding Mr. Andrews’s income from both parties as well as expert testimony from CPAs for both parties.  The trial court granted Mrs. Andrews increase in an amount of child support, but it was less than the she was seeking. Continue reading

Tennessee Child Support Owed & Held Constitutional Even If Child Runs Away

Tennessee law case summary on constitutionality of child support in Tennessee divorce and family law from the Tennessee Court of Appeals.

In re Antar R.W. – Tennessee Child Support Laws Held Owed & Constitutional Even If Child Runs Away

This was an action for child support filed by the State of Tennessee against Dexter W., the father of fifteen year old Antar R. W.  Antar had been living with his adult half-brother, Justin Ratliff.  Mr. Ratliff had applied for child support enforcement against the father, and the petition sought both current and retroactive child support.

The father had previously been awarded custody of Antar after the boy’s mother fell into a coma.  According to the father, Antar had become rebellious and had run away numerous times.  Antar had run away most recently the year prior to the petition’s being filed, and had been living with the half-brother for several months.  The father claimed that the boy’s half-brother had been “harboring” the boy.  The father at the time also had four other minor children residing in his home. Continue reading