In re Woolsey
164 N.H. 301
N.H.2012Background
- Parents have two daughters aged 17 and 14; respondent is a self‑employed truck driver under Fox Ridge Reliance.
- Respondent's 2008–2010 P&L statements show gross receipts and net income: 2008 gross $70,451.48; net $27,947.79.
- 2009 gross $50,601.08; net $25,044.23; 2010 gross $49,624.86; net $24,971.89; these were treated as respondent’s income.
- Under a 2008 order, respondent owed $189 weekly and was substantially in arrears; petitioner's hearing sought modification.
- Trial court found no substantial change in circumstances but allowed review after three years; concluded credibility issues favored petitioner.
- Court calculated adjusted gross income by deducting self-employment tax and other expenses, then set support at $233 per week.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether gross income equals business gross income for child support | Woolsey argues business gross should be net of expenses. | Woolsey contends gross income includes self-employment income net of expenses. | Net income from self-employment must be used; remand for expense deduction. |
| Proper deduction for self-employment expenses under RSA 458-C:2, IV | Expense deduction limited to 50% of self-employment tax is incorrect. | Trial court properly applied statute to deduct limited amount. | Expenses must be deductible if actually incurred and reasonable/necessary to produce income; remand. |
| Whether court’s credibility findings support an upward adjustment | Credibility of respondent supports higher support. | Credibility findings do not justify higher obligation. | Remanded; credibility findings insufficient to sustain adjustment. |
| Constitutional claim of inequitable application | Order unlawfully confiscatory under state constitution. | No constitutional violation shown. | Remanded with instruction to recalculate after proper income/expense treatment. |
Key Cases Cited
- In re Fulton & Fulton, 154 N.H. 264 (2006) (statutory interpretation and guidance for income definition)
- Appeal of Kat Paw Acres Trust, 156 N.H. 536 (2007) (statutory interpretation of gross income)
- In re Albert & McRae, 155 N.H. 259 (2007) (tax definitions not controlling for support purposes)
- In re Rupa & Rupa, 161 N.H. 311 (2010) (income from self-employment net of expenses)
- Dobbins v. Dobbins, 397 N.Y.S.2d 412 (App. Div. 1977) (net income after related costs for support purposes)
- Whelan v. Whelan, 908 N.E.2d 858 (Mass. App. Ct. 2009) (deduction of business expenses when reasonable/necessary)
- Barber v. Cahill, 658 N.Y.S.2d 738 (App. Div. 1997) (earnings defined as gross income minus business expenses)
- In re Marriage of Crowley, 663 P.2d 267 (Colo. Ct. App. 1983) (business expenses essential to income production)