The payment of child support for the benefit of raising children after parents’ divorce is critical. Child support will allow for expenses such as groceries, school supplies, housing and clothing. Generally, the child's other parent has a job and makes money.
If a parent chooses to conceal his or her income by under-reporting the amount of money earned, and not respond to requests for child support, the parent concealing income will incur a great amount of financial strain - as well as create emotional distress as the child does not receive the Support needed due to his or her former spouse's dishonesty.
Many parents worry about how much their child will be receiving in support based on whether the child's other parent is being truthful. Keep reading to learn more about this serious issue.
Ways In Which Many Parents Conceal Income When Determining Child Support Payments:
Before proceeding against your child's other parent for income underreporting, it is helpful to understand how under-reporting occurs. Unfortunately, some individuals will resort to dishonesty to misrepresent the amount of money they earn; and they will claim their income is lower than it truly is. Below are a few examples of ways in which individuals will make their income appear lower to avoid Paying their Fair Share of Child Support:
- Working "under the table": The parent has a cash-paying job (or is paid under-the-table) and does not have to report any wages earned, and therefore does not have any income to report for Child Support purposes, and will not show any record of earning income on their tax return.
- Hiding Business Income: Individuals who have their own business may decide to defer income by not collecting/becoming delinquent on accounts receivable, or by overstating business expenses so that their net income appears lower.
- Delayed Increase in Compensation: A parent may request that his or her employer not pay a raise or a bonus until the Parent has completed the Child Support hearing.
- Under-reporting Overtime or Tips: Parents in positions where they receive tips (or earn overtime wages) sometimes under-report the amount of tips (or overtime) earned. While this may be more prevalent in the service industry, it is just as serious and/or detrimental for the parent who depends on the Child Support they are entitled to receive.
Parents who under-report their income will often use one or more of the methods discussed above to accomplish their goal. Therefore, it is critical that the Parent (with the legal obligation to provide Child Support) be held to the proper level of accountability.
Warning Signs That May Indicate Your Child's Other Parent Is Under-reporting His or Her Income:
While you may not be aware of all of the financial transactions of your child's other parent, there are definitely "warning signs" or "red flags" that may indicate the possibility that your child's other parent is deceiving the Court by misrepresenting (under-reporting) their income:
- Unexplained Discrepancy Between Lifestyle and Income: If the other Parent claims that they have no income but are driving a new car, going on multiple vacations or living in an upscale residence, there may be an issue.
- Unexplained Decline in Reported Income: If the other Parent suddenly reports a sharp decline in income after you filed for Child Support, that may be another indicator of misleading or under-reporting income.
- Recurrent Job Changes: Parents who change jobs frequently, or work for cash-only businesses, will generally have a difficult time providing proof to the Court of their earnings.
While none of these "warning signs" (red flags) will show that the other Parent is lying to the Court regarding his or her income, they are all reasons to complete additional research and/or investigation. In Albuquerque, NM, if you suspect that the child's parent is misrepresenting their income to the Court, you can rely on The Law Office of Anthony Griego, LLC to help you gather the appropriate information to prove that the Child's other Parent is under-reporting or concealing their income.
What Steps You Can Take To Address Your Concerns about Your Child's Other Parent:
It can be overwhelming to know your child's other Parent may be lying to the Court regarding their income; yet you can take a number of steps to assist you once you suspect they are doing so:
- Keep Detailed Records: Start to document any records that might help you prove your case to the Court. Things such as bank account statements, pictures and social media posts could potentially prove the Parent's lifestyle, which is inconsistent with the amount of money they reported as received (income) to the Court for Child Support purposes.
- Request A Formal Review: New Mexico's Child Support Services Division (CSSD) allows family members to request a review of their child support every 36 months (and/or sooner if there is any change in the child support obligor's situation). Therefore, if you now know that an income is not being reported, you can request the CSSD to review your Child Support.
- Obtain a Discovery Order From the Court: As part of the Court Action regarding your Child's Child Support Rights (under the laws of New Mexico), your Family Law attorney can request your child's other parent to provide you with copies of his/her tax return for the previous three years, paystubs, and business documents (which may include a listing of receivables and payables along with the invoices issued).
- Hire a Forensics Accountant: Depending on the level of your child's other parent's income, you may want to hire a Financial Expert (Forensic Accountant) who can aggregate all of the tax returns and/or other information and classify potential unreported income.
- File a Motion to Modify Support: If you have enough evidence to substantiate an increase to your Child's Support Obligation based on the failure of the child's other Parent to report his or her income, your Family Law attorney can file an appropriate Motion in the Court.
The judge will hear the motion if you, your Family Law attorney, and/or your Forensic Accountant gather sufficient evidence. All measures taken into consideration to change payments, including secret income.
Each step relies on particular pieces of evidence and specific legal strategies. This is when it becomes important to have a competent lawyer.
Importance of Acting
Not taking steps to adjust child support when the other parent is under-reporting their income will ultimately negatively impact your child's future. With less child support comes fewer available resources for daily living, education, and/or health care; however, financially, it is not the only problem that will arise from this situation.
Taking action to rectify the issue demonstrates to your child that what they need matters, and that honesty is respected and valued. It also establishes a fair playing field regarding the parental responsibilities required from both parents. Courts also consider dishonesty as a serious issue.
Frequently Asked Questions
You likely have many questions regarding child support when the other parent's income has been under-reported; although you are aware that the other parent is employed but paid under the table or he or she is just simply dishonest about what they are making, you feel stuck trying to prove that which you already know. You do have options. Courts pay a lot of attention to these types of cases and you can use your resources to help uncover the truth, so the court arrives at a proper decision for you.
I suspect the other parent is paid cash under the table; how can I prove that?
It is more challenging to identify the actual income receiving through cash payment; it can be done through information collected from your lifestyle, bank records, as well as witness testimony. You may have to do some investigating to find the evidence you need to prove support; however, the Court will consider circumstantial evidence when making support decisions.
Shouldn’t I report my ex to the IRS?
If your ex-spouse has lied on his or her income taxes, he or she is committing fraud. You can report your ex to the IRS, but it may not directly affect child support payments. Reporting your ex to the IRS may cause other problems (and create pressure) for them. Still, if the IRS investigates, the testimony taken during the investigation can be presented to the Family Court and help prove your case.
How soon will I know if my ex-spouse will have his/her child support payments changed?
This depends on the court's schedule, as well as the complexity of the case filed. Modifying a support amount can take time (potentially months); however, we will provide you with hands-on help for each step during the modification process. Organizing your evidence will allow for a smoother and quicker process.
Do I have to wait until I have "hard" evidence before taking action?
You do not need to have hard evidence before taking action; but the more evidence you have that is relevant to your case, the better. It's our job to help establish what evidence has value and can be used to help prove your case. Occasionally, you will find that something as simple as a text message, or a receipt, could be enough to create a strong case.
What happens if the court finds that the other parent has lied regarding his or her income to the Court?
If the Judge finds that the other parent has lied regarding how much money they earn, he or she may increase the amount of child support the other parent has to pay or impose penalties or back support owed to you. Additionally, the Judge may order the other parent to go back in time and review child support payment amounts to determine whether the child was receiving support based on that amount of income in the past.
How The Law Office of Anthony Griego, LLC, Can Help You and Your Family
The Law Office of Anthony Griego, LLC, has worked with parents throughout the Albuquerque area who have faced similar challenges. Anthony Griego, an attorney who has been licensed to practice law in the State of New Mexico since 2011, has represented people in hundreds of contested divorce, child support and child custody cases. We know how to locate the evidence you need to build a solid case so your child can get the necessary support.
Whether it is filing motions, reviewing financial documents, or representing you at a hearing, we are always there with you to ensure that you are getting the child support you deserve – no matter what.
Anthony Griego is an Albuquerque family law attorney with 15 years of experience in the legal field, dedicated to helping you hold the other parent accountable for paying child support and ensuring his or her child is receiving the support he or she deserves.
If you suspect that the other parent has lied about his or her income to get out of paying child support, then we are here to help you take the next step. We have helped clients in Albuquerque, Placitas, Corrales, Rio Rancho, Bernalillo County and throughout New Mexico. If you need assistance, please contact The Law Office of Anthony Griego, LLC, at 505-508-3110.
Our clients come first; we know that family law issues can be very stressful and are here to support you in every step of the process. We will be there every step of the way to make sure you receive the support you need and deserve during these difficult times.
