The Business-Owner Payor’s Playbook — and How to Beat Every Page of It

Corporate shells, retained earnings, family payroll, and personal expenses through the company: the business-owner avoidance playbook is standardized. So are the counters.

What California Law Says

Support income analysis reaches company benefits and distributions available to the payor; courts add back personal expenses run through entities, scrutinize retained earnings in closely held companies, and disregard sham salary arrangements. Business records are discoverable, and the entity’s bank accounts levy when alter ego and fraudulent transfer showings land.

How to Collect, Step by Step

1. Subpoena the full picture: entity returns, general ledgers, merchant accounts, payroll records.
2. Add back the personal spend: vehicles, travel, insurance, the phone family plan on the company card.
3. Challenge artificially low salary against industry norms and the company’s actual distributions.
4. Track payments to the new spouse or relatives on payroll for no visible work.
5. Escalate to forensic accounting where the arrears justify it — fee awards make him fund his own audit.

Common Questions

His corporation earns plenty but pays him almost nothing. Untouchable?

Retained earnings in a company he controls are exactly what courts scrutinize — control plus availability defeats the low-salary arrangement.

Can his LLC’s bank account be levied for his personal support debt?

With alter ego facts or traced transfers, yes — entities that operate as his pocket get treated as his pocket.