In re Marriage of Brand (Kansas 2002)
There are many factors to consider when determining what amount of a Subchapter S corporation's income should be included as income of its shareholders for purposes of calculating child support. Some of those factors include past earnings of the corporation, ownership share, and the shareholder's ability to control distribution or retention of the net profits of the business. In those cases where income can be manipulated because of the ability to control distributions, heightened scrutiny should be exercised. Here, distributions made from a pass through entity to satisfy tax liabilities was deemed not to be considered as income for the purposes of modifying a child support order.