Does a one-time jump in annual income affect CS?

[oldblueeyes]

So it's been a great 5+ years since I was separated/divorced. Luckily I wasn't stupid enough to import a wife (whether foreign or domestic, giving a woman so much power over my life by marrying her is a huge mistake...I was lucky to get out relatively cheaply once...I won't be taking another chance!!). Instead, I focused on my business and it's quite successful now.

I haven't contributed to my RRSPs in years, so my current contribution limit is around $80,000. I've kept my salary at around $60,000 since before I was divorced and I intend to keep it that way for the foreseeable future. My question is, if I give myself an $80,000 dividend this year, would that $80,000 one-time bump affect my CS and expense ratio permanently? If so, I won't bother giving myself the dividend and I'll just let it sit in the corporation.

And yes, I'm a CONFIRMED BACHELOR FOREVER! MGTOW! NEVER AGAIN! I'm too old to risk my financial security by marrying again. Odds are a man will end up alone in old age, so it's better to be alone and wealthy than alone and financially destroyed by divorce! Greed is good!

[piggybanktoex]

Leave it buried in the corporation and use money to help kids directly when needed.

Also agree, marriage once was enough.

[Links17]

Or move to Quebec and get a vasectomy and just don't sign the civil marriage document

[HammerDad]

The short answer is, yes the dividend would likely be considered income for the purpose of c/s. It would come down to you arguing that it is a one time thing, a windfall, and there is no pattern. She would argue that it shows up on your line 150 and was derived from your income. She would likely then ask you to open your corporate financials to see what retained earning you're leaving in the company each year. Then the judge would decide from there.

IMO, leave it in the company, reinvest it. I wouldn't pull it unless I had to.

[oldblueeyes]

The short answer is, yes the dividend would likely be considered income for the purpose of c/s. It would come down to you arguing that it is a one time thing, a windfall, and there is no pattern. She would argue that it shows up on your line 150 and was derived from your income. She would likely then ask you to open your corporate financials to see what retained earning you're leaving in the company each year. Then the judge would decide from there.

IMO, leave it in the company, reinvest it. I wouldn't pull it unless I had to.

Thanks, I was kind of thinking the same thing, but I just wanted somebody to confirm it. I have to make a new will soon, so I'll be asking my lawyer about it too.

I guess I'll just leave it in the company; I need to expand a bit in the near future anyway. I'll worry about my RRSPs when my kid's done university in ten years' time; the contribution room will always be there.

I knew that the earnings of a privately controlled corporation, when it's set up as a contractor to one sole "employer", were included in a man's income for CS purposes, but I wasn't sure about a PCC which is actually a bonafide business with different customers every day.

I have a surplus property which I was thinking of selling, but I suppose that might jack up my CS permanently too should I sell? If that's the case, I'll just keep it.

I'm paying 65% of dance lessons, which me exie signed her up for seven days a week, sometimes multiple classes per day; I'll be god-damned if I'm paying 85%! Oh well, at least it's cheaper than hockey.

Stay single and prosper!