I have been divorced 5 years and work as an Associate for another Dentist. if I buy my own Dental Practice, my income will go up from about $200k/yr to $300k/yr, before Interest and Principal payments on the bank loan to pay the loan to buy the Practice. My question is, will the Divorce court allow me to deduct both the Interest and Principal payments ( ~$30k each per year) from my increased income for re-calculating my support payments?
1 Answer from Attorneys
If you structure the purchase properly the interest will be deducted and the principal should be covered by depreciation of equipment and good will. The court should take into consideration your additional net income, including adjustments for taxes, interest and other costs. If you have not sought the help of an experienced business attorney, you should do so. Please feel free to contact me if you have more questions. My practice is focused more on business than domestic relations.