Determining the requirement for and amount of child support and/or spousal support is an important part of many Florida divorces. The amount of income the paying spouse earns is highly important to these determinations, as it helps show their ability to pay a certain amount. Unfortunately, many soon-to-be former spouses use certain methods to lower the amount of income they earn or to misrepresent their earning power in order to avoid orders of high amounts of child or spousal support.
Specifically, many spouses develop “RAIDS,” a term commonly used in family law that stands for “Recently Acquired Income Deficiency Syndrome.” RAIDS occurs when a high-earning spouse suddenly reports a decrease in income, thereby expecting lower support requirements. Depending on their employment situation, spouses may have different methods of achieving this deceptive goal.
The most common way for spouses receiving a salary or hourly wages to hide income is to suddenly decrease overtime hours. Regular overtime can substantially increase earning potential. If a spouse declines to work overtime for a period of time prior to a divorce, their paystubs will clearly reflect less income. Such spouses often return to their regular overtime hours and income immediately following a court ruling.
Salaried spouses may also renegotiate their contracts to temporarily receive some of their income as additional benefits, expense reimbursement, or some other form of compensation not readily identifiable as income on a paystub.
Spouses who work as salespeople and receive much or all of their income in the form of commissions may also develop RAIDS. This is often achieved in one of the following ways, among others:
· Not selling up to their full potential for a period of time;
· Continuing to make sales, but delaying the finalization of sales (and payment of commission) until after the divorce is final; and
· Having a fellow salesman take credit and receive commission for a sale, and then pay the spouse the commission in cash that you are unaware exists.
It is perhaps easiest for self-employed spouses to significantly reduce or hide income. First, many self- employed individuals often transact in cash for at least some of their business deals, and they may easily hide this income by simply not reporting it to the IRS on their taxes. At that point, you may have to look to personal logbooks or other records of cash sales to prove that income. Additionally, self-employed individuals may substantially increase their business expenses, which works to lower their overall “income” on their tax returns.
These are only some examples of how spouses can use RAIDS to reduce the amount of support they are ordered to pay. An experienced Boca Raton family law attorney knows how to examine tax returns, pay statements, and other financial documents to identify RAIDS and make an argument to the court in favor of the child or spousal support that you truly deserve. If you are facing a divorce, do not hesitate to call the office of Alan R. Burton as soon as possible for assistance with your case.