CaseCited

In re C.G.S.

578 S.W.3d 215 (Tex. App. 2019)

Good LawTexas Court of Appeals, 14th DistrictApril 2, 2019Cited 67 times

Summary

The court addressed the calculation of child support when a parent is self-employed and has variable income. The court held that the trial court must consider all available evidence of actual income, including tax returns, business records, and lifestyle evidence, rather than simply accepting the obligor's claimed income at face value.

The opinion provides guidance on imputing income when a self-employed obligor appears to underreport earnings or manipulate business expenses to reduce apparent income for support calculations.

Key Holdings

  • 1Courts must examine all evidence of actual income for self-employed obligors, not just reported earnings
  • 2Business expenses that primarily benefit the owner personally may be added back as income for support calculations
  • 3Lifestyle evidence is relevant when reported income does not match the obligor's standard of living

Why This Case Matters

Provides clear guidance for family law practitioners dealing with self-employed obligors who may underreport income in child support proceedings.

Facts

Mother sought child support modification arguing father, a self-employed business owner, earned substantially more than his reported income. Evidence showed father maintained an expensive lifestyle inconsistent with claimed income. Trial court accepted father's reported income without further analysis.

Legal Principles

Income calculation for self-employed obligorsImputed incomeChild support guidelines

Statutes Interpreted

  • Tex. Fam. Code § 154.065
  • Tex. Fam. Code § 154.066

Related Cases

In re C.J.C.

603 S.W.3d 804 (Tex. 2020)

Good Law

The Texas Supreme Court clarified the standard for modifying a custody order under Texas Family Code § 156.101. The Court held that a material and substantial change in circumstances must be proven before the trial court may consider whether modification serves the child's best interest. The Court emphasized that the two-pronged test requires threshold proof of changed circumstances as a gatekeeping function, separate from the best-interest analysis.

Supreme Court of Texas•2020•Cited 156 times

Get Weekly Case Updates

New case summaries and legal research tips delivered to your inbox every week. Free for Texas attorneys.