Is Subchapter S Pass-through Income Counted For Child Support Purposes?

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Many a corporation owner argues that pass-through income from a subchapter S corporation should not be included for child support purposes because it is not distributed and therefore it is not an available source from which to pay child support. The Sub-S company usually distributes an amount equal to the estimated personal income taxes that have to be paid on the corporate earnings, but makes greater distributions only periodically when the company is able.
Walker v. Grow was decided by the Maryland Court of Special Appeals last month, holding that the burden is on the shareholder seeking to exclude pass-though income to prove that the income is necessary to be retained to fund necessary business related investments. has a nice article posted that surveys earlier law across the county on this issue.

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