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Elapsed time to impute income on Form 13.1

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  • Elapsed time to impute income on Form 13.1

    Is there an elapsed time to impute income on an underemployed spouse? i.e. Can the underemployed spouse say, that I didn't object to their underemployment in a timely manner, therefore, the income they enter in Form 13.1 shall reflect the current low paying job? My fear is financial disclosure and Form 13.1 is dragged on for far too long and we can no longer state their income ought to be what it was in 2022.

    Background:
    We separated in July.

    Spouse's primary sources of income has been an employed accountant for decades up to the beginning of the last quarter of 2022 and real estate agent since late 2019 to present.

    Spouse's severance and EI has run out and they've recently taken up an office job, letter of employment was a typed up word doc with an exact 5 digit salary $#0,000.00, earning half of what they made in their last year as an accountant. What should their annual income be on Form 13.1?

    My understanding, based on their progressively successful/salary increasing career as an accountant and real estate agent...is it should be the last year as an accountant employee + average of real estate agent income for past 3 year complete calendar years to present?​​

  • #2
    The 2 issues are unrelated. You are not consenting to anything by ex filing her financials. The Form is asking for facts - all current income/debt as of time of filing; updated constantly. Imputed income is brought anytime to figure out what a true income should be if they are found underemployed. A specialist may be needed to figure out what that amount should be, and done at motion or trial.

    Comment


    • #3
      Depending on the circumstances, your ex will also need to provide three years of income tax forms which will show previous income.

      You will be arguing they are underemployed based on what the information is. The financial statement is simply facts on the financial status.

      Case used for underemployment is Drygala v Pauli. Give it a read on canlii and the citations that have come from it. Just because you believe they are underemployed does not mean a court would agree. There could be a number of factors like certifications, health issues, changes at employers etc. The onus will be on you to prove they are purposely not achieving their full earning potential. Expecting someone to work more than 40 hours a week doing two jobs is not normal and would not be considered by the court.

      Comment


      • #4
        I've asked for all income tax supporting docs for past 3 years...they're dragging their feet...

        They've had a progressive (salary and responsibilities) career as an accountant employee for Fortune 500 companies their entire working life. Onus is still on me to prove accountants at Fortune 500 companies are highly employable with market research reports of salary ranges? Spouse said to me several times during the marriage that they're highly employable as an accountant.

        Onus on me to prove their roles and responsibilities had busy times (month and quarter end) and significantly less work at other times? Spouse chose to work as realtor for several years to present. There are additional income generating side hustles, I didn't mention in my original post, they've been doing their entire adult life too. I haven't/didn't pressure them to take on dual income roles nor the side hustles.

        How much weight is given to the timing of possible underemployment and separation date? So just looking at income values and timing, it would appear either intentional or not, taking up this new secretary job significantly reduces their current income initially at separation.

        I have no doubt, they'll claim being overworked or mental health issues. What weight is given to the spouse having normalized high levels of income for several years, then suddenly dropping it shortly after separation?

        Comment


        • #5
          You have to prove ex is making less than what they were at time of separation - or less than what someone with their resume should be able to make.

          Ex will then have to prove why they should be allowed to work less hours or less pay.

          Then you would prove what a true income should be.

          The longer ex has been out of the workforce, the harder it would be to expect the same income starting somewhere new. It's an art finding the right amount between any minimum wage job and what you think they "should" make.

          Comment


          • #6
            You will need an order for them to produce those documents. If they keep dragging their feet, get in front of a judge and get it ordered.

            Just because you think they should be working a lot and earning a lot of money doesn't mean they have to. If they were overworked while married that doesn't mean it has to continue.

            Read the case I noted and see what was said. Someone working 40-50 hours a week at one job is acceptable. Expecting someone to work 60-80 at two jobs is not.

            Comment

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