Husband had an annual net income of $826,478. The trial court set child support at $19,284 per month based on that salary.
Husband argued that under the definition of income his loan payments were both reasonable and necessary expenses. Without payment of those expenses, his could not make as much in income.
Husband had purchased the business from his own father. He was making the loan payments to his father. The court had given a partial deduction for the principle. But, no deduction for the interest he paid. The court noted that the payments were very high. Prepayment had also occurred.
Husband appealed. The appellate court agreed with the trial court’s decision. It said a court may properly conclude that such expenses are only partially deductible. The loans the ex-husband incurred clearly benefitted himself financially. The loans also benefitted his children. The loans allowed Husband to earn a significantly greater income.
In re Marriage of Hill, 2015 IL App (2d) 140345.
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