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-   -   Help - STBX wants to use a forensic accountant (http://www.ottawadivorce.com/forum/f3/help-stbx-wants-use-forensic-accountant-21177/)

hamster39 07-09-2017 06:32 PM

Help - STBX wants to use a forensic accountant
 
My STBX has put in her answer that she wants to use a forensic accountant to investigate my side business. This side business generates around $10K in profit/year. (she clearly believes I make a lot more than that) I make $60k/year as an employee of a bank.

This is ludicrous IMHO. We have no assets outside of money in bank accounts. I understand that she will have to prove to the court that my 13/13.1 is not true and she will have to get a court to order me to provide all information and that she will ultimately end up having to pay the costs. Once the accountant comes back and reports the truth, won't she look like a fool? She does have a behavioural personality disorder. not sure if I should bring that up to the courts.

arabian 07-09-2017 07:20 PM

Why not save yourself a lot of time and money and simply provide full financial disclosure including, but not limited to, all of your bank statements and corroborating HST/GST filings? After all, you certainly don't want to give the impression to the court that you are unreasonable, particularly if you have nothing to hide and all financial records are readily available to you.

If you bring up your "perceived" belief that she has a personality disorder then it very well may turn out that you are the one that is going to look like a fool.

She likely just wants to see how you are reducing your profitable little 'side business' to 10k in earnings.

OrleansLawyer 07-10-2017 08:18 AM

Quote:

she will have to prove to the court that my 13/13.1 is not true
The onus is on the person making declarations to prove them. This is not to say that a bald statement from the other party - "they are worth more!" - is sufficient; however neither is your bald statement, "this is the value".

Quote:

she will have to get a court to order me to provide all information
Her lawyer will request it in writing. If you refuse to provide it, they will bring a motion for disclosure - and for you to pay the costs of the motion. If your refusal was unreasonable (ie, if the disclosure needs to be provided), you will be hit with costs.

Quote:

Once the accountant comes back and reports the truth, won't she look like a fool?
The court will not blame her for not knowing the value of your business.

You have claimed a value of X. She does not believe it, and is seeking to prove a different value. This is how it is done.

The question she needs to ask herself is whether the cost of pursuing this is financially worthwhile.

Tayken 07-10-2017 10:07 AM

Quote:

Originally Posted by OrleansLawyer (Post 222128)
The question she needs to ask herself is whether the cost of pursuing this is financially worthwhile.

Excellent question...

To be frank. The only time these professionals get involved is when the company is actually worth something. My recommendation would be for you to close the company officially and send them over the documentation.

A small business with a small revenue isn't worth the hassle. If it was your primary source of income then you are stuck. But, your primary source of income is your employment. So, kill the business and give them the statement that it is closed and move on and provide your T4.

Remove the argument and they will have nothing to argue about.

OrleansLawyer 07-10-2017 10:16 AM

Quote:

A small business with a small revenue isn't worth the hassle.
To follow up with this, for context - forensic accountants generally start in the range of $10k-20k for the work. If the business is immensely simplified, it may be less than $10k, but that is her risk to take.

Quote:

kill the business and give them the statement that it is closed and move on and provide your T4.
Or let her incur the cost and do the search. It is a hassle for OP, however it adds 17% to his income. Aside from the imputation argument, why close a profitable business?

Tayken 07-10-2017 07:20 PM

Quote:

Originally Posted by OrleansLawyer (Post 222132)
Or let her incur the cost and do the search. It is a hassle for OP, however it adds 17% to his income. Aside from the imputation argument, why close a profitable business?

Profit is relative in family law. He will spend more than 10K in legal costs to deal with the issue. Just having a lawyer respond to the inquiries that will be made on this matter can quickly add up to the 10k "profit".

I am of the humble opinion that eliminating arguments or points of disclosure like this are more cost effective. The other party in the litigation is already talking about a 10-15k option to evaluate a business that doesn't make that per year! The other party in this matter is NOT reasonable.

Penny wise... Pound foolish.

Aghast 07-11-2017 10:36 AM

If he closes the business, does she have a case of underemployment? After all, he is making 10k less than his capability.


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