Retained earnings are profits of a business that are not paid out to the owners but instead are retained by the business for several reasons, such as for investment, business expansion or the purchase of equipment. Not every owner in a business has the same amount of decision-making authority regarding the operations of a business, including the decision to retain earnings.

When retained earnings are identified as a potential form of income in a support case, the court has to determine whether the retained earnings are available for use and therefore should be included in the income of the person involved in the business.

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