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Michigan Family Law Blog

Tuesday, April 23, 2019

What if My Spouse Makes Cash Money That Isn't Reported to the IRS?

In a divorce case, one of the biggest factors that the court will consider when granting or denying alimony is the parties' incomes.  Many people are concerned that their spouse either works in an occupation that involves cash tips or the other spouse may own a business that handles cash but the parties have not reported this income to the Internal Revenue Service (IRS) during the marriage.  The concern (other than potential issues with the IRS - don't worry the judge in the divorce will not report this under reporting of income IRS) is that the court will not consider this income when calculating alimony with a result of an inequitable alimony award.

Proving Cash Income in a Divorce Case 

Fortunately there are many ways that the court will allow a spouse to prove income in a divorce.  In one recent case decided by the Michigan Court of Appeals, Csercse v Csercse, March 19, 2019; the lower court awarded alimony to the wife for two (2) years after a three (3) year marriage based upon a number of factors, including the dominating and abusive nature of the husband.  In that case, the husband had a business that involves him refurbishing and selling antiques and other items.  His tax returns showed an average three-year income of approximately fourteen thousand ($14,000) dollars.  However, the court heard the testimony of the wife and she testified that he would often make over ten thousand ($10,000) dollars and up to thirty thousand ($30,000) dollars at various shows he would attend and sell his crafts.  While the husband denied this was accurate, the court believed the wife and imputed an annual income of sixty ($60,000) dollars to him.  Imputing income means that the court will treat the person as though they actually earn this amount of money when calculating alimony, child support and dividing property regardless of what the tax returns may show.     

Working with Oakland County, Michigan Divorce Alimony Attorneys

There are many other ways for a good attorney to convince the court to impute income to a spouse other than testimony.  If you are faced with a potential divorce or separation, it is very important to have good representation that can help prove this unreported income.  Contact North Oakland Michigan Divorce Lawyer, Cameron C. Goulding, to schedule a consultation by calling (248) 608-4123, by email at goulding@camerongoulding.com or through the northoaklandmichigandivorcelawyer.com website.


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