One of our Alabama Divorce Questions readers asks a couple of good questions about the standards for calculating entreprenueral income for figuring child support. I did my best to answer the questions.
One of the most often-invoked strategies of enterprenuers is to argue that their income is the salary they pay themselves. Rule 32 of the Alabama Rules of Judicial Administration makes it clear that this is not what’s relevant. The standard is gross receipts minus ordinary and necessary business expenses, plus any depreciation or amortization.