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  • Newbie help please

    Married 30 years. Wife has never worked. Paid each of us about 50k a year. Separate 6 weeks ago. Had a serious brain bleed 8 years ago. Numerous reoccurrences. Aprox net worth million bucks. I would guess she entitled to 50k a year support. What with my many near death experiences can they force me not to just retire so I can pay her. She will get about 400k after fees and everything I expect. ?
    Last edited by Craigerst; 10-14-2014, 07:06 PM. Reason: It was a mess

  • #2
    Further to above it is a joint owned co and real estate and rrsp as assets and 2 lines of credit she ran up as liabilities. The 1million net worth is after taking off the loc she got into.

    Scared shitless I will be actually forced to work rather than live a barebones lifestyle at cottage and hopefully manage to stretch my life out longer than expected.I would be content

    Any hepl would be appreciated people. Ask away for details I have likely missed

    Comment


    • #3
      - You'll need medical letters indicating your limited capacity to work (i.e. earn).
      - How old are you now (i.e. how close to retirement age).
      - yes, all assets+debts will be split 50-50, after realty/selling fees.
      - If she used LOC to buy a car she uses exclusively (or jewelry or solo vacation), then it is possible to argue that the LOC debt and the asset (car/jewelry/memories) both go to her (which is in your favour)
      - With non-liquid assets (Co and real estate) it may be difficult for one to buy out the other. Perhaps you keep the co and she keeps the real estate? RRSP split can balance it out. (to avoid forcing sale and incurring fees)
      - How will you valuate your co, now that you are personally winding down. Do you have a succession plan in place to help preserve the value?
      - You supported her fully 30 years, not likely she will be expected to start supporting herself now -> hence spousal support.
      - Any inheritances or insurance awards kept separate (i.e. not comingled in household funds) can be kept separate from the $ split.
      - your CPP (just the portion accumulated over those 30y) will also be split with her
      - household contents, vehicles, toys, other fixed assets are generally valued at 'kijiji' prices, which are typically 20% to 50% original cost.
      - If stress is a risk factor for you - make sure to deal actively (counseling, meds, lifestyle) with the stress of getting this sorted out
      Last edited by dinkyface; 10-14-2014, 07:30 PM.

      Comment


      • #4
        Thank you for quick reply. I actually just deleted the second part it confused me. My number 1 concern since I am able to document that co has struggled but been profitable since the main aneurysm blow up is I will somehow be "shirking the responsibility of support. It will look this way. It is not. I am comfortable end up with a equal amount as her. I can mange a much reduced lifestyle. She has already started trumping up her health state since she has never worked and does not to work. Will a court say you cannot retire. I certainly can watch the numerous details off the mess as it goes down but can they prevent me from simply selling the business and giving her 1/2.

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        • #5
          I am only 55. If any would keep Co it would be me but that would not be possible since I want to be 200 miles away at cottage.

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          • #6
            Equalization of assets/debts and spousal support not related. So even if she gets 50% net worth, you still have to deal with the issue of spousal support, which hinges on your earning power. That's where you have to get medical evidence to back up your position. Your age is also relevant.

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            • #7
              A business evaluator is in mind but I had a actual offer last year so nothing is more accurate than a offer but I suppose it will have to be evaluate and sold

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              • #8
                I was afraid of that. Your suggesting a choice to retire and live modestly is different than choosing to retire and live modestly since if I have a reoccurence I die?

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                • #9
                  Originally posted by Craigerst View Post
                  If any would keep Co it would be me but that would not be possible since I want to be 200 miles away at cottage.
                  Then keeping the cottage might not work out for you. Unless your company is worth little and your RRSP is worth lots.

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                  • #10
                    Any chance the co can go to your ex, with you working as part-time consultant on contract? This would preserve the co value while you transition out.

                    Was the offer to purchase given with the knowledge you would no longer be involved?

                    Comment


                    • #11
                      I actually am thinking aloud. My medical issues are numerous and I expect can be fully backed up as a guy that needs to stop work to extend his life. If this what I have to do then I do it.

                      Is there a second option where I simply decide my life is going through a big change. I am going to live a much simpler life style at my modest 1/2 of the settlement

                      What I am thinking you are saying is I cannot choose to change my lifestyle they will effectively force me to keep my Co since it is the Golden Goose that lays out the spousal support that she wants but I don' want it! Correct?

                      Comment


                      • #12
                        There would definettly be a period of involvement with the purchaser. Short term, maybe a year as a consultant. They were firm about that.

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                        • #13
                          No one will tell you to not retire.
                          SS will be determined based on past earnings. It will ultimately be up to you on how you figure out to pay her.
                          Judges are onto people who come up with incurable medical problems right around the time they divorce. I'm not saying that you don't have legitimate health concerns, but be aware that if you want to use your "medical situation" to try to get out of paying SS you are in for an uphill battle. Expert testimony with scrupulous medical evidence would be required should your issue go to court. Expert testimony can cost 5,000.00 for part of the day.

                          You are probably best to consider coming up with cash and work out lump sum settlement for SS (yes on top of her 50% entitlement to marital assets).

                          You are still young and would be viewed as having many years ahead of you to earn significant income.

                          Comment


                          • #14
                            Asset. 450 k matrimonial home
                            Business 500k
                            Cottage. 200k
                            Investment condo. 30k into it due February

                            RRSP ME. 80k. Spouse. 50k
                            LIABIlities. 250 k. She left and maxed them out
                            Last edited by Craigerst; 10-14-2014, 08:09 PM. Reason: Too many homes

                            Comment


                            • #15
                              You mean get her more up front to waive SS? It might be too much then for me to live on a even bare bones lifestyle. Life really sucks right now. The only hope I might have and please comment. Share distribution of the corporation is unclear right now. My health issue wiped out parts of my memory. I think I own 2/3 and she owns 1/3 but I will not know that for a few days

                              Comment

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