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Understanding Financial Statements for Support Purposes

To determine child and spousal support, income of the payer(s) must be determined.  Where self-employment or corporate income is involved, this determination becomes quite complex.  I wrote this article in 2000 to assist you in gaining some understanding of how to read financial statements and tax returns.  In this way, hopefully you can interpret the information to calculate income, or to judge someone else’s calculation.  Click below for the PDF file.

NOTE THAT THE WORDING OF THE AUDITOR AND ACCOUNTANT REPORTS HAVE CHANGED SUBSTANTIALLY SINCE PUBLICATION OF THIS ARTICLE.  However, the level of reliability related to the reports will be similar to that discussed.  THE TAX RETURN FORMAT AND LINE NUMBERS HAVE ALSO CHANGED, but the concepts still apply, and most line numbers are the same with a couple additional zero’s added.  The theory still applies, but the tax return referencing may be difficult to follow.  I know the article should be updated, but finding time is a challenge.  Contact me if you have questions.

Understanding Financial Statements and Tax Returns for Support, originally published in 2000

Please review my other web site articles to obtain further information about determination of income.

Blair Corkum, CPA, CA, R.F.P., CFP, CFDS, CLU, CHS holds his Chartered Professional Accountant, Chartered Accountant, Registered Financial Planner, Chartered Financial Divorce Specialist as well as several other financial planning related designations. Blair offers hourly based fee-only personal financial planning, holds no investment or insurance licenses, and receives no commissions or referral fees. This publication should not be construed as legal or investment advice. It is neither a definitive analysis of the law nor a substitute for professional advice which you should obtain before acting on information in this article. Information may change as a result of legislation or regulations issued after this article was written.©Blair Corkum