When Your Ex Tries to Hide Income: A Dallas Divorce Lawyer’s Guide to Child Support Modification
Going through a divorce is never easy, and the challenges don’t always end when the decree is finalized. If you’re dealing with an ex-spouse who has stopped paying child support or claims they can’t afford their court-ordered payments, you’re not alone. As an experienced Dallas divorce lawyer with over 25 years of practice, I’ve seen countless cases where parents attempt to manipulate the system to avoid their financial responsibilities to their children.
A recent Texas Court of Appeals case, Interest of A.E.C., provides valuable insights into how courts handle situations where a parent voluntarily reduces their income to avoid child support obligations. This case demonstrates the importance of having skilled legal representation when dealing with complex child support modification issues.
Understanding the A.E.C. Case: When a Parent Chooses Unemployment
The case involved Angel Carrera, who was originally ordered to pay $900 per month in child support after his 2018 divorce. What happened next is unfortunately common: Carrera voluntarily quit his $3,000-per-month job at a U.S. company and moved to Mexico to start a construction business, claiming he could only afford to pay much less in support.
However, the evidence told a different story. Despite claiming he earned only $17,500 annually, Carrera’s construction company generated over two million pesos (approximately $100,000 USD) in 2023. Even more telling, he had taken 19 vacations to Europe, Mexico, and the United States with his new wife since 2022, while his children’s financial needs remained unmet.
How Texas Courts Handle Intentional Underemployment
The El Paso Court of Appeals upheld the trial court’s decision to impute income to Carrera, demonstrating several key principles that every parent should understand:
1. Voluntary Unemployment Doesn’t Excuse Support Obligations
When a parent voluntarily reduces their income, Texas courts can base child support calculations on their earning potential rather than their actual reported income. The court found that Carrera had “intentionally chosen to quit his job” and became “intentionally unemployed,” which justified deviating from standard guidelines.
2. Courts Consider Hidden Income and Lifestyle
The trial court noted several red flags:
- Failure to report cash transactions in his business
- Inability to provide credible tax documentation
- Expensive lifestyle inconsistent with reported income
- Admission that he didn’t report $14,000 of income to the Mexican government
3. Benefits from New Relationships Can Be Considered
Importantly, the court considered that Carrera’s new wife and stepson paid his $2,200 mortgage and most household expenses, giving him “extra money in his pocket” of approximately $1,175 per month. While courts cannot directly include a new spouse’s income in calculations, they can consider how these arrangements affect the obligor’s ability to pay support.
What This Means for Dallas Parents
If you’re dealing with a similar situation in Dallas County, this case provides important precedents:
For custodial parents: You have legal options when your ex-spouse voluntarily reduces their income. An experienced Dallas child support attorney can help you petition the court to impute income based on earning capacity rather than actual reported earnings.
For paying parents: Simply quitting your job or taking a lower-paying position won’t automatically reduce your support obligations. Courts will examine your motivations, qualifications, and ability to earn higher income.
Red Flags That May Indicate Income Manipulation
As a family law attorney serving Dallas families for over two decades, I’ve identified several warning signs that suggest a parent may be attempting to hide or reduce income:
- Sudden career changes to lower-paying jobs without legitimate justification
- Moving assets to new spouse or family members to appear financially constrained
- Operating cash-heavy businesses without proper documentation
- Lifestyle inconsistent with reported income (expensive vacations, luxury items)
- Refusal to provide complete financial documentation or tax returns
- Working “under the table” or in cash-only arrangements
- Claims of unemployment while maintaining expensive lifestyle
The Legal Framework for Child Support Modification in Texas
Understanding Texas Family Code provisions is crucial for anyone dealing with child support issues:
Standard Guidelines vs. Deviation Factors
Texas Family Code Section 154.122 establishes that support orders conforming to guidelines are presumed to be in the child’s best interest. However, Section 154.123 allows courts to deviate from guidelines when considering factors such as:
- The obligor’s ability to contribute to support
- Financial resources available for the child’s support
- Housing, automobile, or other benefits provided by employers or third parties
- The child’s needs and circumstances
Intentional Unemployment Provisions
Section 154.066 specifically addresses situations where “the actual income of the obligor is significantly less than what the obligor could earn because of intentional unemployment or underemployment.” In such cases, courts may apply guidelines to the obligor’s earning potential rather than actual income.
Material and Substantial Change Requirements
To modify an existing support order, Texas Family Code Section 156.401 requires proof that circumstances have “materially and substantially changed” since the original order. However, voluntary income reduction typically doesn’t qualify as grounds for reducing support obligations.
Strategies for Protecting Your Children’s Interests
Whether you’re seeking to establish, modify, or enforce child support, having the right legal strategy is essential:
For Custodial Parents
- Document lifestyle inconsistencies – Keep records of your ex-spouse’s spending, travel, and lifestyle choices
- Gather employment history – Collect information about their education, work experience, and earning capacity
- Monitor social media – Posts about vacations, purchases, or business activities can provide valuable evidence
- Request comprehensive financial discovery – An experienced attorney can compel production of tax returns, bank statements, and business records
- Consider hiring financial experts – Forensic accountants can help uncover hidden income or assets
For Paying Parents
- Maintain detailed financial records – Keep thorough documentation of income, expenses, and any legitimate changes in circumstances
- Avoid voluntary income reduction – Understand that career changes may not result in reduced support obligations
- Be transparent with the court – Attempting to hide income or assets typically backfires and can result in higher obligations
- Seek legal advice before major changes – Consult with a Dallas divorce lawyer before making significant career or financial decisions
The Importance of Experienced Legal Representation
The A.E.C. case demonstrates why having skilled legal representation is crucial in child support matters. The court’s decision to impute income and consider third-party benefits required sophisticated legal arguments and thorough preparation.
Key aspects of effective representation include:
Comprehensive Case Preparation
Successful child support modification cases require extensive preparation, including:
- Financial discovery and analysis
- Employment and earning capacity evaluation
- Lifestyle and spending pattern documentation
- Expert witness testimony when needed
Understanding Complex Legal Standards
Child support law involves multiple statutory provisions and case law precedents. An experienced best Dallas child support lawyer understands how to navigate these complexities and present compelling arguments to the court.
Strategic Case Presentation
Effective advocacy requires presenting evidence in a way that tells a compelling story while addressing all relevant legal standards. This includes coordinating witness testimony, financial documentation, and expert analysis.
Common Mistakes to Avoid in Child Support Cases
Having handled hundreds of child support matters, I’ve seen parents make critical errors that harm their cases:
For Custodial Parents:
- Waiting too long to seek modification when circumstances clearly warrant it
- Accepting inadequate documentation of the other parent’s financial situation
- Failing to document lifestyle evidence that contradicts reported income
- Not understanding the legal standards for proving intentional underemployment
For Paying Parents:
- Believing voluntary unemployment justifies reduced support
- Failing to properly document legitimate income changes
- Attempting to hide assets or income from the court
- Not seeking legal advice before making major financial decisions
How to Choose the Right Dallas Child Support Attorney
When your children’s financial security is at stake, choosing the right legal representation is crucial. Here are key factors to consider:
Experience and Track Record
Look for an attorney with extensive experience in Texas family law and a proven track record in child support cases. Our firm has over 25 years of experience handling complex family law matters in Dallas County.
Comprehensive Service Offering
Choose a firm that can handle all aspects of your case, from initial consultation through trial if necessary. We provide comprehensive services including divorce, child custody, asset division, and mediation services.
Personalized Attention
Avoid firms that treat you like just another case number. We provide personalized attention to each client, ensuring you understand your options and feel supported throughout the process.
Transparent Pricing
Legal fees shouldn’t be a mystery. We believe in transparent pricing and will clearly explain all costs upfront during your consultation.
Decision-Making Checklist for Child Support Issues
Use this checklist to determine if you need legal assistance with child support matters:
☐ Has your ex-spouse’s income significantly changed (up or down) since the original order?
☐ Are you receiving inconsistent or no child support payments?
☐ Do you suspect your ex-spouse is hiding income or assets?
☐ Has it been more than three years since your last support modification?
☐ Are you considering a significant career or life change that might affect support?
☐ Do you need help enforcing an existing support order?
☐ Are you facing contempt proceedings for support issues?
If you answered “yes” to any of these questions, it’s time to consult with an experienced Dallas child support attorney.
The Path Forward: Protecting Your Family’s Future
Child support disputes can be emotionally draining and legally complex, but you don’t have to navigate them alone. The A.E.C. case demonstrates that Texas courts take a strong stance against parents who attempt to manipulate the system to avoid their responsibilities.
Whether you’re seeking to establish, modify, or enforce child support, having experienced legal representation can make the difference between success and frustration. Our approach combines compassionate support for your family’s emotional needs with strategic, aggressive advocacy in the courtroom when necessary.
We understand that every family’s situation is unique, and we take the time to develop strategies tailored to your specific circumstances and goals. From initial case evaluation through final resolution, we’ll keep you informed and involved in every decision.
Frequently Asked Questions About Child Support Modification
Can my ex-spouse reduce child support by quitting their job?
No. Texas courts can impute income based on earning potential when a parent voluntarily becomes unemployed or underemployed. Simply quitting a job typically doesn’t justify reducing support obligations.
How do I prove my ex-spouse is hiding income?
Proving hidden income requires thorough financial discovery, including bank records, tax returns, business documents, and lifestyle evidence. An experienced attorney can help gather and present this evidence effectively.
What happens if my ex-spouse moves to another country like in the A.E.C. case?
Moving to another country doesn’t eliminate child support obligations. Texas courts have jurisdiction over support orders and can take enforcement actions including asset seizure and international cooperation measures.
How often can child support be modified?
Texas law generally requires waiting three years between modifications unless there’s been a substantial change in circumstances. However, certain situations may warrant earlier modification.
Can the court consider my new spouse’s income when setting support?
Courts cannot directly include a new spouse’s income in support calculations. However, as the A.E.C. case shows, courts can consider how a new spouse’s contributions affect your ability to pay support.
What’s the difference between modification and enforcement?
Modification changes the terms of an existing order, while enforcement seeks to collect unpaid support. Both may be necessary depending on your situation.
Take Action to Protect Your Children’s Future
If you’re facing child support challenges, don’t wait to seek help. The longer you delay, the more difficult it becomes to recover unpaid support or address ongoing issues. Our team is ready to provide the experienced, compassionate representation your family deserves.
Contact our Dallas office today for a confidential consultation. We’ll review your situation, explain your options, and develop a strategy to protect your children’s financial security. With over 25 years of experience and a commitment to personalized service, we’re here to guide you through this challenging time and fight for the best possible outcome for your family.
Schedule your consultation today and take the first step toward resolving your child support concerns. Your children’s future financial security is too important to leave to chance.
This article is for informational purposes only and does not constitute legal advice. Every case is unique, and you should consult with a qualified attorney about your specific situation. For more insights on Texas family law, visit our blog.
