Hello all,

This isn't exactly tax related, but it is.

I am currently a company driver making pocket change each week. I am wanting to go O/O or LP, but my X gets 25% of my money.

Anyone have any ideas that I can legally lower my income (on the books...not in my pocket) so my evil X doesn't continue to drain me dry?

Jake

the same way you hide it from the irs.

talk to a good tax guy. one that knows the trucking industry good

Don't even think about becoming an owner/op without researching the scenario that I am about to describe.

I am assuming that your ex-wife got a court order from a whackjob judge for that 25%? The reason I ask this and also made my original statement is as follows; The courts(specifically the family courts) are horribly ignorant when it comes to self employed people. When figuring child support payments they tend to base it on the GROSS income before expenses and not the net(profit). I am not saying for certain that this would pertain to your situation, but you better TRIPLE check before you go and buy a truck.

I had heard of the previously described situation happening, but never put much stock into it. Then one of my drivers decided to buy a truck and become an owner operator. He sold the truck after only two months because he went from paying child support on his $70,000 a year company job to paying support based on his new $250,000 a year o/o gross. Needless to say, that killed him financially.

You aren't clear if this money is alimony or child support.
If this is child support, you aren't depriving your wife of what is legally hers, but depriving your child(ren) of what is legally THEIRS.
But to answer your question...no there is no LEGAL way you can do this.

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I've heard of a lot worse than 25%, not that 25% is good. It would be easier to hide your income with a business, but that's going to a lot of trouble to hide some income, unless you've thought this out and really want to be an O/O. Do ya really think with you having your own business she's going to expect you'll be making the same or less? I don't know your situation, but say she gets a lawyer to go through your records after a year or so of operating shady, everything had better be on the money or you'll be dealing with that and the IRS. Sounds like your just gonna have to grin and bear it.

Eskimo is right. My mother kept takingmy fater back t court untill she found a judge that said "I know your books are cooked so I'm basing support on your gross"
Needless to say, the state of WI is still after my father for back child support and I'm 34yo now.

Well, first off, You don't have to hide anything! I live in Va. and here I went INC. and saved myself and my second wife and family a ton of money. And , second, In my situation, my children didn't receive total benefit from all I was paying. All I was doing was paying ex's bar and latex tab. Enough on that. Go INC and pay yourself a low salary and beni package. I pay myself 40hr week at min wage. My second wife makes better money on paper than I do. Works in Va. total payments went from 650mt to less than 65wk. GOOD LUCK I hope this helps and I hope your divorce isn't as nasty as mine was!!

I know that everyone is quick to jump on this guy for not wanting to pay the ex-wife, but we don't know the situation. Many times, the ex will spend on the money on herself and the kids don't see a dime of that money. He very well could be planning on just cutting the money that he gives to her, yet he will still continue to support the kids directly, paying for school activities, taking them clothes shopping, providing them with computers or cell phones or whatever they need. I know the frustration of seeing an ex-wife living large with new cars, vacations with boyfriends, plastic surgeries, etc while the kids aren't getting what they need.

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Thanks for everyones replies.

Yes it is for child support which why I pay it at all and yes my daughter sees almost none of this money. I would just disappear if it wasn't for my daughter.

HIDIVE:

I thought about INC, but I am wondering if the double taxing, fees, etc would end up breaking even or more to the amount that I would have to pay her anyway. Could you give me some ballpark figures on your operation?

I think you really need to talk to a GOOD accountant.