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