Lamoure v. Lamoure, 2011 DJDAR 12882. Why being a businessman sucks.
Once again in August 2011 we see that everyone should try to work for the government, and not themself. It is truly astounding how many ways that an honest and prudent self employed person can get essentially penalized by the laws of the State of California in divorces. Lets list them for fun, starting with the latest.
Last Thurday, our local inland empire court of appeal has sided on the part of the ‘good’ (child support services) against the ‘evil’ (people who owe support).
In this case, the father got custody as the wife was in rehabilitation for alcohol abuse. He was ordered to pay support. He eventually got a reduction of that support, but was unable to pay all of it. This presumably was partially due to the cost of raising the parties children, and partially due to the literal wreckage of the home and the parties credit. The lower court (Pacheco) granted his request for hardship as to his current pension income, allowed his social security to be garnished but allowed his IRA to be invaded. It was not clear from the ruling as to whether the involuntary levy of the IRA resulted in tax or penalty to the prior owner. This may have been a fair decision by Pacheco, and also the court of appeal. Regardless, the situation calls for legislative intervention at the national and state level.
Let me say preliminarily, that government employees have money taken from them for their pension benefits, and more money gets chipped in by their employer at that time. Then after retirement, the vastly underfunded pension fund then gets subsidised by the 12 people in California that still pay income taxes. This pension money cannot be touched or levied upon. The current contributions (and matching) are removed from income for calculation of support.
If a self employed person wants to save for retirement, first of all, this savings is considered to be voluntary, and support has to be paid on the full income. Second of all, even if you do manage to scrimp and save it after the larger support order is made (in an IRA), they will be able to take it away from you. Third of all, this all can be done by computer without meaningful rights to object, and (in this case) even though you have custody of the minor children in the case.
So if you are self employed, how do you save for retirement? Certainly staying married is a good solution, but not an option for some people. I have no answer for you.
Lets list those reasons that it sucks to be self employed in California, starting with the new one, then with the old ones, and then go on to general complaints about support calculations in general.
1. Your IRA is appparently not safe.
2. There is no allowance in the support calculations for reasonable retirement savings (other than that social security that you may never receive). So child and spousal support will be higher for you than for an employee of someone else.
3. They will all too often make you pay for the accountant to audit yourself, and to pay your exes attorney to call you a liar.
4. They will all too often find that your ‘business’ (you) has goodwill, and you have to pay your spouse for half that as part of the final ruling. If there is business debts, then those should go with the business as part of the value of the business, but would only offset the goodwill. Any potential lawsuits or future capital gains tax liability out there are not considered in the value for a divorce as too speculative and not “immediate and specific.”
5. If you have employees, you are lazy and underpaid. If you have no employees, they will claim you are a workaholic and have no time for the children.
6. Regardless of if you have employees, you now may have to pay for workers compensation, and self employment tax. Liability Insurance is also not cheap, not even getting into the issue of health insurance. That is all a legitimate writeoff, but if you are not making a profit, they will then say that you should be imputed a fair wage for support calculations.
7. If you decide you need a tax writeoff, buying land does not help. Homeowners technically pay more support than renters in California. If you own rental property, the court will disregard the depreciation, and may een consider that non-taxable income. If you rent out a room, new rulings indicate that may be income as well, and cannot be offset by the mortgage.
8. If you want to remarry, make sure you marry someone with no kids and a great job, as then your tax bracket goes up. Having a wife who stays at home with her kids brings your tax bracket down, and you pay more support.
9. Last but not least, if you are a success, then you will have to pay income tax, to support all the people who are not paying any tax at all (and/or lying about their income), or working for governmental agencies.
I thing we need to take better care of our honest business owners, land owners and married couples, there is no time in California history that we have needed them more. Part of that, is to find ways to motivate them to stick in the fight, and allow them a possibility of retirement someday.
We desperately need a better plan for allowing and protecting retirement savings than what we have. If we do not, we may see a level of elder poverty previously never seen in the history of this nation.
I simply desired to appreciate you once more. I am not sure the things I could possibly have handled in the absence of the strategies provided by you regarding this field. This was an absolute frustrating matter in my circumstances, nevertheless looking at the very specialised manner you solved the issue forced me to jump with happiness. I’m thankful for this advice and as well , believe you realize what an amazing job you happen to be accomplishing educating many people using your site. Most likely you haven’t met any of us.
Oh my goodness! an amazing article dude. Thank you However I am experiencing issue with ur rss . Don’t know why Unable to subscribe to it. Is there anyone getting identical rss problem? Anyone who knows kindly respond. Thnkx
Ive been meaning to read this and just never got a chance. Its an issue that Im very interested in, I just started reading and Im glad I did. Youre a fantastic blogger, 1 of the finest that Ive seen. This weblog certainly has some details on topic that I just wasnt aware of. Thanks for bringing this stuff to light.
Hi and thanks. It was indeed really worth the read.
I have been absent for some time, but now I remember why I used to love this site. Thank you, I’ll try and check back more often. How frequently you update your site?
Thanks for some other great post. The place else could anyone get that type of information in such an ideal method of writing? I have a presentation subsequent week, and I am at the look for such information.
I come across your website by searching, i just want to say i keep it on my bookmarks, thank you.
I have been absent for some time, but now I remember why I used to love this website. Thank you, I’ll try and check back more often. How frequently you update your web site?
Marked article. I desire certainly dividend this article with my friends. Thanks as a service to the info.
I hope you never stop! This is one of the best blogs Ive ever read. Youve got some mad skill here, man. I just hope that you dont lose your style because youre definitely one of the coolest bloggers out there. Please keep it up because the internet needs someone like you spreading the word.
Thanks for taking the time to write that, I found it very interesting. If you get a chance you should check my site as well. I hope you have a good day!
Nice blog here! Also your web site loads up fast! What host are you using? Can I get your affiliate link to your host? I wish my site loaded up as quickly as yours lol
Hey would you mind letting me know which hosting company you’re working with? I’ve loaded your blog in 3 different web browsers and I must say this blog loads a lot quicker then most. Can you suggest a good hosting provider at a honest price? Thanks a lot, I appreciate it!
Hello would you mind letting me know which webhost you’re utilizing? I’ve loaded your blog in 3 different web browsers and I must say this blog loads a lot quicker then most. Can you suggest a good internet hosting provider at a reasonable price? Thank you, I appreciate it!
I appreciate your post, it is interesting and compelling. I have found my way here through Google, I shall get back once more
Many thanks for the art, previously interesting and compelling. I found my way here through Google, I am going to return once more
Cool blog
Totally awesome.
I simply want to say I’m beginner to blogs and absolutely liked you’re website. Almost certainly I’m going to bookmark your website . You absolutely come with amazing article content. Thanks a bunch for sharing with us your web-site.
Thanks for a very informative web site. What else may I get that type of information written in such a perfect means? I have a project that I’m simply now running on, and I have been at the look out for such info.
Great post. I was checking continuously this blog and I am impressed! Extremely helpful info particularly the closing phase
I care for such information a lot. I used to be seeking this certain info for a very lengthy time. Thank you and good luck.
Cool blog
Keep up the superb work, I read few posts on this website and I think that your blog is rattling interesting and has got lots of wonderful info.
I truly enjoy studying on this site, it holds wonderful content. “Don’t put too fine a point to your wit for fear it should get blunted.” by Miguel de Cervantes.
It is actually a nice and helpful piece of info. I am happy that you just shared this useful info with us. Please keep us informed like this. Thank you for sharing.
Hello there, simply became aware of your blog through Google,my site is http://www.chilggoooto.com
Someone essentially help to make significantly articles I might state. This is the first time I frequented your website page and to this point? I surprised with the analysis you made to create this actual post extraordinary. Magnificent task!
Very interesting details you have remarked, thankyou for putting up.
I believe this is one of the so much important information for me. And i’m happy studying your article. However want to observation on some general things, The site style is perfect, the articles is actually great : D. Excellent task, cheers
This is a topic close to my heart cheers, where are your contact details though?
Thanks, I have just been searching for information approximately this topic for ages and yours is the best I have found out till now.
That is very interesting, You’re an overly skilled blogger. I’ve joined your feed and look ahead to looking for more of your fantastic post. Additionally, I’ve shared your site in my social networks!
Normally I do not learn article on blogs, but I wish to say that this write-up very pressured me to check out and do so! Your writing taste has been surprised me. Thank you, very great post.
I adore the template on this blog. Could you let me know where you can get it? Appreciate it!
This is a different sort of opinion that many people don’t usually talk about. Usually when I find stuff like this I stumble it. I don’t think this would be the best to submit though. I’ll take a look around your site though and submit something else.
Magnificent site. A lot of useful information here. I’m sending it to several pals ans additionally sharing in delicious. And naturally, thanks for your effort!
Awesome post! I will keep an on eye on your blog.
Thank you for sharing superb informations. Your web site is so cool. I’m impressed by the details that you have on this blog. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for more articles. You, my friend, ROCK! I found simply the info I already searched all over the place and just couldn’t come across. What a great web-site.
Hello. splendid job. I did not imagine this. This is a excellent story. Thanks!
This post offers clear idea in support of the new users of blogging, that really how to do running a blog.
I use a relatively expensive marketing firm, but send me an email to tkendall@cpl.net, and I will be happy to forward any message you like to them if you want to talk to them. BLessings.
we have an link to send us email on the site…
I use a rather expensive marketing firm, but if you want to send me an email to tkendall@cpl.net, will be happy to forward it if you want to talk to them.
I use a rather expensive marketing firm, but if you want to send me an email to tkendall@cpl.net, will be happy to forward it if you want to talk to them..