QUESTION

Starting a business and child support

Asked on Sep 09th, 2013 on Business Law - New Jersey
More details to this question:
I am starting a business with a partner. I am paying Child Support with arrears included. Will the business funds and taxes be affected and impact my partner in the business.
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1 ANSWER

It depends upon what kind of business format you are using.  If you start a Corporation, and you are paying yourself and your partner salaries, as employees of the Corporation, then your obligations for child support arrears may be subject to which garnishments that may require the company to pay any wage garnishment.  If you have a general partnership, there may be a risk of your parties interest being affected.  So long as the business is a separate entity, your interest in the business may be affected, your salary paid by the business may be affected, but your partner's interests, subject only to perhaps being reviewed in an effort to collect or enforce as against you, should remain unaffected.
Answered on Sep 16th, 2013 at 11:11 AM

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