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Please, give me your best guess....

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  • Please, give me your best guess....

    Hello all, and thanks for taking a moment to provide me with a little guidance.

    I'm with a woman who is about to go to case conference this month. We live together now, the two of us, her three kids, and my two. Two of her kids (like mine) are week on/week off. One of them is full custody with her, though her husband is not the biological father but was dad to her for 8 years. They started and built a business together, which he continued to run, but is major cash business and pays no taxes as a corporation. On paper it loses money. Yet he's still in the natural 5 bedroom mega house they built together.

    So far, no child or spousal, no settlement for house or anything else. Bu she used about 80k over 1.5 years off their line of credit to establish herself and kids, and survive.

    So my question... how do you think the story will end??

    Thanks so much, and sorry for the long post...


  • #2
    With respect to the one child she has full custody of, I am wondering why the ex has not paid CS. I understand that he is not the bio father, but apparently he was in their lives long enough to establish a strong enough bond (AKA loco parentis) with two of the three children to maintain access/shared custody. Despite how the relationship of the third ended, I would think CS would be due for that child in full plus an off set amount for the remaining two that they share custody of.

    With respect to the house and business they built together and he now has, I would think the she would be entitled to a split of asset (equity in the home, and share of the business) less the amount ($80,000) she used on the line of credit (that I am assuming he caries).
    Otherwise at minimum a split of equity via unjust enrichment for her efforts to build the house etc. Possible the same with the business. I am not savvy with financials and business upon separation.


    • #3
      The court likely make him pay some amount of child support for the non-bio child if she pursues it. He may also have to pay child and/or spousal support in addition to this, depending on how the numbers work out. She's entitled to half of the mega-house, so either he will have to buy out her half or the property will be sold and the money split. She also may be entitiled to half the business assets. Cash business with no taxes paid seems fairly dodgy to me, so they both might be mutually wary of bringing the books in front of a lawyer or judge. A better way might be to try and get him to buy her out of her half of the business in some sort of settlement.


      • #4
        Thanks About_Time
        The business was legit, but being a hair and nail salon there was significant cash business and tips which may not have always been reflected for tax purposes. He has since then sold the business, but claims it is an arrangement with the new owner and was not a money exchange. Rumours swirl that he was paid in the order of 100K for it, but hard to prove.


        • #5
          I wouldn't let that slide. Make sure she demands all the paperwork pertaining to the sale, go over it with a fine-toothed comb and hammer him with questions with regards to the transaction. She's entitled to half of anything he makes off it.


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