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    Need some serious advise
    10 yr marriage with 2 kids 10 n 7 with 50% custody/split

    1) Own a professional corp with 900k cost value of investments pre tax income .Seperation date in mid 2020 .Value of investments dropped to 400k . In last 2 years they have grown to 5 million . Unfortunately ex has Class B non voting shares in corp for income splitting and I have class A non voting shares meaning full control . Does she get the seperation value of corp or current value of 5 million in equalization . She has not contributed one bit to corp , with myself earning sole income .

    2) Ex is a professional but chooses not to work as she is lazy to complete her licensing exams for past 5 years inspite of support and nanny/daycare provided by me for kids .Will the court impute income to her ,she wants only minimum wage imputed to her when she is capable of earning 300k/year just cites childrens needs and wants minimum wage imputed to her .

    3) Matrimonial home is in joint name : Who gets it . I am paying all expenses inspite of being locked out.

    Is the law fair to men in Canada ? I am an immigrant and still hold a foreign passport.Can i just disregard the Canadian Court orders if unfavorable citizing my foreign nationaly . My native country does not enforce Canadian law.

  • #2
    Originally posted by AlexLitty View Post
    1) Own a professional corp with 900k cost value of investments pre tax income .Seperation date in mid 2020 .Value of investments dropped to 400k . In last 2 years they have grown to 5 million . Unfortunately ex has Class B non voting shares in corp for income splitting and I have class A non voting shares meaning full control . Does she get the seperation value of corp or current value of 5 million in equalization . She has not contributed one bit to corp , with myself earning sole income .

    The main question what was on your and her line 150 before separation. If hypothetically you were earning 200k and she had 0 for years without history of earnings, there is a chance judge would impute her only a minimum salary (if you are lucky) or even zero, but it is a lot of guessing.

    There is another issue. Imagine you earned on your corporation 300k this year, but decided paying yourself your standard salary of 200k. While it would be fine with CRA for your corporate tax, the family court looks at it differently, as if you earned 300k. And writing off corporate expenses is harder to prove to Family court vs CRA. The reason I am bringing it, it is possible to slip on those barrels of oil and receive a support claim based on 5mln income when you close the position.

    Comment


    • #3
      Originally posted by respondent View Post
      The main question what was on your and her line 150 before separation. If hypothetically you were earning 200k and she had 0 for years without history of earnings, there is a chance judge would impute her only a minimum salary (if you are lucky) or even zero, but it is a lot of guessing.

      There is another issue. Imagine you earned on your corporation 300k this year, but decided paying yourself your standard salary of 200k. While it would be fine with CRA for your corporate tax, the family court looks at it differently, as if you earned 300k. And writing off corporate expenses is harder to prove to Family court vs CRA. The reason I am bringing it, it is possible to slip on those barrels of oil and receive a support claim based on 5mln income when you close the position.
      Thank You for this , they are using my full income from corp at 300k,not my salary.Most of expenses are straight forward like 20% overhead paid to my clinic which is standard across Canada . She has a history of earnings upto 150k yearly during our marriage but sat at home to enjoy n live off my earnings for past few years despite being a trained family doc . My employer is giving me a letter for the deduction,so wont be an issue . I wont close the position on those stocks ,maybe after I move out of the country . As I understand one time non recurring capital gains is not income ,but courts need to be convinved and here is where I need a professional .Might spend 10k to get a professional evaluate that and provide expert opinion to the courts than pay support on 5million income .

      Comment


      • #4
        900K income and asking for free advice from random strangers on legal matters. The rules for the layfolk are different from those with 900K income.



        Prediction that this "free" advice will be very expensive for you.

        Comment


        • #5
          Originally posted by Bogdan View Post
          AlexKitty's income and cash reserves make him a prime target to get racked by lawyers.
          100%

          I'd say he needs to work towards closing as many topics possible. Preferably NFP should be primary goal without getting assets frozen for years. The support could be adjusted later as there will be less financial pressure.

          Comment


          • #6
            Originally posted by Bogdan View Post
            I'll argue he needs both including paid ($$) legal advise as well as independent and neutral advise (with no $$ on the table).

            AlexKitty's income and cash reserves make him a prime target to get racked by lawyers.
            Thank You,this is why I am here . To learn more , lawyers can rob you blind.

            Comment


            • #7
              Originally posted by Bogdan View Post
              Don't give me them any blind faith and always push for Return On Investment.

              I think you're in a better spot then you think .. seems like you're 50/50.

              Other then that (and whatever the offset CS payment is) .. there's not much to litigate about.
              OP may experience a lot more than just CS offset:
              1. Sale of Matrimonial Home.
              2. Corporation (do the count valuation date or the present market value)
              3. Who will get right to purchase matrimonial home
              4. Mortgage, property taxes, insurance he has been making on his own, while ex was living in it.
              5. Section 7, kids going to private school (in best interest of child of course), children counseling, camps, beach vacations - he earns 6 digits, she officially 0, so they will try to make him to cover 90% of those costs.


              These are just few things that come to mind, I am not even touching income imputation and overpaid support. Any of items on a list is a potential litigation cost for dozens or more thousands of dollars. When lawyers (on both sides) see such money, they become even more greedy, and they'll find what to fight about.

              Comment


              • #8
                Absolutely
                These are all the issues , I belive the only way to make them come to bargain is to altogether stop paying her a penny in support .I will agree to pay support only if they settle the the other things first .
                Otherwise ,simply move my assets abroad and leave them twiddling their thumbs .

                Originally posted by respondent View Post
                OP may experience a lot more than just CS offset:
                1. Sale of Matrimonial Home.
                2. Corporation (do the count valuation date or the present market value)
                3. Who will get right to purchase matrimonial home
                4. Mortgage, property taxes, insurance he has been making on his own, while ex was living in it.
                5. Section 7, kids going to private school (in best interest of child of course), children counseling, camps, beach vacations - he earns 6 digits, she officially 0, so they will try to make him to cover 90% of those costs.


                These are just few things that come to mind, I am not even touching income imputation and overpaid support. Any of items on a list is a potential litigation cost for dozens or more thousands of dollars. When lawyers (on both sides) see such money, they become even more greedy, and they'll find what to fight about.

                Comment


                • #9
                  Originally posted by AlexLitty View Post
                  Absolutely
                  These are all the issues , I belive the only way to make them come to bargain is to altogether stop paying her a penny in support .I will agree to pay support only if they settle the the other things first .
                  Otherwise ,simply move my assets abroad and leave them twiddling their thumbs .
                  It will probably be a bad move. Your house if I am not mistaken had 600k equity, out of which 300k yours, but her lawyer would make everything possible to freeze proceeds from sale, or even the sale (she needs place for kids to live song). By fleeing they will robe you for entire 300k in no time.

                  If court imputes your ex 150k she was making before separation, you will be paying 1,560 child support, and 1,088 spousal, if court finds SS necessary (I took your income as 280k a year, don't actually know what is it). We can consider this as 2,000 a month, as in your income tax bracket half of spousal payment would come back in tax return.
                  So, the point is. With 2,000 a month support payment it is 24K a year, or 240K in 10 years. By that time both of your kids will grow up.
                  240K is less than 300k you will leave by walking away, and you won't see your kids. If judge insists on 7k a months you are paying now, then they don't leave you money to live on.

                  My bigger concern here would probably be not the actual payments, but the legal bill - it often exceeds support payments

                  Comment


                  • #10
                    Originally posted by respondent View Post
                    It will probably be a bad move. Your house if I am not mistaken had 600k equity, out of which 300k yours, but her lawyer would make everything possible to freeze proceeds from sale, or even the sale (she needs place for kids to live song). By fleeing they will robe you for entire 300k in no time.

                    If court imputes your ex 150k she was making before separation, you will be paying 1,560 child support, and 1,088 spousal, if court finds SS necessary (I took your income as 280k a year, don't actually know what is it). We can consider this as 2,000 a month, as in your income tax bracket half of spousal payment would come back in tax return.
                    So, the point is. With 2,000 a month support payment it is 24K a year, or 240K in 10 years. By that time both of your kids will grow up.
                    240K is less than 300k you will leave by walking away, and you won't see your kids. If judge insists on 7k a months you are paying now, then they don't leave you money to live on.

                    My bigger concern here would probably be not the actual payments, but the legal bill - it often exceeds support payments
                    I agree , I might loose 300k in the home ,but the corp is worth 6 million before tax and 4 million after tax .

                    Comment


                    • #11
                      Advise

                      Originally posted by AlexLitty View Post
                      I agree , I might loose 300k in the home ,but the corp is worth 6 million before tax and 4 million after tax .

                      You are not losing money. You and your ex built a life TOGETHER. She got pregnant and had children and you had a home and a life TOGETHER. It doesnt matter who earned more or who worked or who didnt work. You were partners in a life. She is entitled to a share of that life you built together whether you agree or not. You were fortunate that you had a partner who raised your kids and kept your home so you could build your business.

                      Comment


                      • #12
                        Originally posted by rockscan View Post
                        You are not �losing� money. You and your ex built a life TOGETHER. She got pregnant and had children and you had a home and a life TOGETHER. It doesn�t matter who earned more or who worked or who didn�t work. You were partners in a life. She is entitled to a share of that life you built together whether you agree or not. You were fortunate that you had a partner who raised your kids and kept your home so you could build your business.
                        I like how you stressing together, when he clearly does it alone. They have 50/50 custody, she chooses not to work, he chooses to work. He could and should use your very own argument - she was fortunate to have a partner who was raising her kids and kept home, as well as paid for her education so that she could have MD and earn more than many on this forum can, including OP.

                        As for business, it is no more than luck. He made a bet on a stock after separation, and guessed where the market would go. Good for him, but it has nothing to do with her. If he guessed wrong way, he would've be broke. The point after separation your investment is your investment. When it becomes on T5, you paying SS/CS on it, but not before that, as he hasn't sold, and if say tomorrow Moscow would have palace coup, his 6mil oil could drop overnight.

                        Comment


                        • #13
                          Originally posted by AlexLitty View Post
                          I agree , I might loose 300k in the home ,but the corp is worth 6 million before tax and 4 million after tax .
                          I'd say be careful here. The moment they realize how much it worth now, and it isn't a rocket science - simple disclosure request would do, they would make a motion to freeze assets. It won't because she is entitled, but to annoy you and start expensive litigation.

                          Comment


                          • #14
                            Originally posted by respondent View Post
                            I like how you stressing together, when he clearly does it alone. They have 50/50 custody, she chooses not to work, he chooses to work. He could and should use your very own argument - she was fortunate to have a partner who was raising her kids and kept home, as well as paid for her education so that she could have MD and earn more than many on this forum can, including OP.
                            He works alone. She carried and delivered their kids. She took care of them. She was at home caring for the home and children. Stop taking away from what one partner does just because one goes and earns money outside the home. Yes she can go back to work but prior to that she was doing work with the kids and the home.

                            Stop disregarding what the parent at home does. They arent sitting at home watching soap operas and eating bon bons. And even if they have help to do work around the house, they have to organize that and manage things. A lot of people think that only the money earner contributes but you wouldnt be able to go to work and manage the home life at the same time.

                            Its one thing to be angry your spouse didnt go back to work and now you have to pay spousal but its not necessary when it comes to understanding what they do around the house while you are married.

                            Comment


                            • #15
                              Originally posted by rockscan View Post
                              He works alone. She carried and delivered their kids. She took care of them. She was at home caring for the home and children. Stop taking away from what one partner does just because one goes and earns money outside the home. Yes she can go back to work but prior to that she was doing work with the kids and the home.

                              Stop disregarding what the parent at home does. They aren�t sitting at home watching soap operas and eating bon bons. And even if they have help to do work around the house, they have to organize that and manage things. A lot of people think that only the money earner contributes but you wouldnt be able to go to work and manage the home life at the same time.

                              It�s one thing to be angry your spouse didn�t go back to work and now you have to pay spousal but it�s not necessary when it comes to understanding what they do around the house while you are married.
                              Anger has nothing to do with it, it is pure logic. Whatever they had on DOS, minus what they had on date of marriage is divided, so she got her share for that equally.


                              Their kids are in school for years now. She was working before divorce, making 150k, but the moment she filed for divorce she suddenly decided that she can't work? Why would this be fair to children or to him? They both were working before the divorce, yet he chooses to continue supporting his children by working, yet she decides to take a free ride on a system. It is actually her behaviour and similar high earners that affects women who really can't work, or stayed home raising children and truly depended on husbands income.

                              Comment

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