Tenn. Child Support on Business Owner’s Earnings Less Certain Expenses

Tennessee law case summary on income determination and deductions for income determination of a business owner under Tennessee divorce and family law from the Tennessee Court of Appeals.

Presson v. Presson – Tennessee Child Support Case Summary – forrestry services business

Michael and Joan Presson were married in September of 1974. They had one child.  Mr. Presson sued for divorce in 1991, and the Pressons entered into a Marital Dissolution Agreement (MDA) three days after the divorce complaint was filed.  The MDA set Mr. Presson’s monthly child support obligation at $700.  Mrs. Presson subsequently consulted two attorneys before retaining a third in an attempt to invalidate the MDA.  The parties entered into an Amended and Re-stated MDA in July 1991.  This second Agreement provided that Mr. Presson was to pay monthly child support of $800.

In June 1992, the Mrs. Presson filed a petition to set aside the final decree regarding the child support.  At an evidentiary hearing in the trial court.  Both parties presented expert testimony touching upon Mrs. Presson’s mental and emotional state during the period of negotiations leading up to the execution of the Amended and Restated MDA.  The trial court entered a nine page order on June 18, 1993, in which it denied the Mrs. Presson’s Petition to Set Aside Final Decree, but increased her child support entitlement to $1,000 per month plus $300 per month to be placed in an educational trust fund. Continue reading

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Self-employed Tenn. Father Held Earns $14,000 / Mo for Child Support

Tennessee law case summary on income determination for self-employed parents in Tennessee divorce and family law from the Tennessee Court of Appeals.

Norton v. Norton – Tennessee Child Support Case Summary – Income determination for self-employed child support obligors

Note: Although the Tennessee child support guidelines are significantly different today than at the time this case was issued, the discussion regarding income determination is a very helpful example of the types of issues that arise when dealing with self-employed business owners.

Lisa Norton appealed the trial court’s judgment increasing the child support obligation of  Max Norton from $400 per month to $1,200 per month; ordering Mr. Norton to contribute $300 per month to an educational trust fund for the Nortons’ minor child.  In considering Mrs. Norton’s petition to modify child support, the trial court found that Mr. Norton’s financial condition changed very little since 1988 when they agreed to a Marital Dissolution Agreement (MDA).  However, based primarily on Mr. Norton’s agreement to pay more child support, the trial court increased his monthly child support obligation to $1,200.  The Tennessee Court of Appeals vacated the trial court’s decision based on its conclusion that the trial court used the incorrect test for determining whether Mrs. Norton was entitled to the relief sought in her petition for modification. Continue reading

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

Self-employed Adjustments to Income Under the Tennessee Child Support Guidelines

Self-employed Parent's Adjustments to Gross Income Under the Tennessee Child Support Guidelines
Self-employed Parent’s Adjustments to Gross Income Under the Tennessee Child Support Guidelines

Self-employed Parent’s Adjustments to Gross Income Under the Tennessee Child Support Guidelines

Under the Tennessee child support guidelines, the calculation gets tricky when determining income for self-employed parents, . If the Rules below do not make absolute sense to you, it doesn’t to most lawyers, too.  Certified Public Accountants (CPAs) can help. Continue reading