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  • challenging imputed income

    i have been served a motion which i had already taken care of before i was served ( long story)

    anyways, im thinking with this motion to challenge his income and our imputed amount. my ex is self employed and has finally sent me his last two years income info.. we had imputed him a low amount at the beginning of our court proceedings and followed my lawyers advise to just take the imputed amount because any child support was better than nothing since my ex felt i made enough money to support our child.
    so his tax returns show he's made well under minimum wage and theres lots of questionable expenses that he provided and i think there's some missing information. i know he does cash jobs on the side and his major product or service is questionable too due to his nature of his business.
    i contacted a forensic accountant and they require at least 6g if ex co-operates with providing info.
    i dont have that kind of extra cash on hand and i really dont think they will be able to really help. he is not living a "high" life but again he apparently has the best lawyer in town and sure he is guiding him along the way.
    what are my options?

  • #2
    what are my options?
    No directions without a destination.

    What do you want?

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    • #3
      Direction on weither or not to stay at the imputed amount or to challenge his actual income potential. A business after 5 years should be making somesort of profit. But claiming on his income tax returns of less than 15000 is very questionable.
      And the process behind getting more information about his business expenses etc.
      What the courts view as allowable expenses and which ones are not.

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      • #4
        If he started the business five years ago, it's not unreasonable that it's not profitable yet. Many self-employment ventures take twice that long to turn a profit, if they ever do.

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        • #5
          Originally posted by tugofwar View Post
          ...challenge his actual income potential.
          ...
          Potential should not be relevant. Support should be based on his actual income.

          Originally posted by tugofwar View Post
          ...What the courts view as allowable expenses and which ones are not.
          It is not that hard. It should be quite clear if it a legitimate business expense or not. If he is only spending the money for business reasons and there is no personal benefit, then it is legit. If not, some of it can be added back and grossed up to accommodate the tax benefit of claiming it.

          Do you have a general guess on how much more than the imputed amount his actual income is?

          Comment


          • #6
            Short of getting an order having a forensic accountant go through all his books, bank accounts, etc... It may not be worth your time. If he is claiming an after expense income of 15,000 it is probably not the case that the other party is writing off 150,000 to get to 15,000... Revenue Canada would have audited the person ages ago if that was the case.

            So, there may be 5,000-10,000 in write offs that really are not great. But, the impact to the child support paid for the additional money may not be worth your efforts.

            Check: MySupportCalculator.ca

            At 15,000 it is $95 a month in Ontario.
            At 20,000 it is $160 a month in Ontario.
            At 25,000 it is $200 a month in Ontario.

            Do you want the pain and agony of court proceedings for those differences in CS payments?

            Good Luck!
            Tayken

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            • #7
              i have been going back and forth with pursuing this matter with getting a more accurate income level from my ex's self employed business.
              When you know that they are doing cash jobs on the side and a few other illegal matters to get ahead.
              someone that claims to make 7 and 15000 the last few years, could not possibly live off that, make cs and daycare payments, get caught up on arrears in a few months and pay me out equalization.
              there's a high car loan for 2 years, high gas expenses (business does not require travel), professional fees over 15000, advertising etc.
              he's been shady over a few other issues, including a bogus house appraisal that at the last minute i found challenged his reasons for why the house depreciated and the difference between appraisals was close to 50,000 and the other factor is his business is known to many including the courts as a shady business.

              Comment


              • #8
                Originally posted by tugofwar View Post
                i have been going back and forth with pursuing this matter with getting a more accurate income level from my ex's self employed business.
                When you know that they are doing cash jobs on the side and a few other illegal matters to get ahead.
                someone that claims to make 7 and 15000 the last few years, could not possibly live off that, make cs and daycare payments, get caught up on arrears in a few months and pay me out equalization.
                there's a high car loan for 2 years, high gas expenses (business does not require travel), professional fees over 15000, advertising etc.
                he's been shady over a few other issues, including a bogus house appraisal that at the last minute i found challenged his reasons for why the house depreciated and the difference between appraisals was close to 50,000 and the other factor is his business is known to many including the courts as a shady business.
                Then the matter is for Revenue Canada to investigate...

                Comment


                • #9
                  Yes it is, but where does that leave me? I know there's lots of unjust matters in courts, this would be one of the many I am faced with.
                  cra will not provide me details or make any difference to child support other than him getting into alot of hot water

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                  • #10
                    So initial consultation with a lawyer
                    Whom specializes alittle more with self employed income, brought me back to reality!
                    So yes unless I want to piss away a shit of money, my ex
                    Pretty much gets off Scott free.
                    So any of you whom also have issues having to turn over some cents to your ex- go become self employed

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                    • #11
                      put him out of business. cash jobs? operating without permits...licences. give an inspector his particulars and business card. he is totally ripping off his kids is what it sounds like. what does he charge for the jobs he does? do you have any idea?

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                      • #12
                        He is paying some support, but even that low amount leaves a lump in his throat. Apparently at the beginning of our seperation he refused to give me a dime cause I made enough to support myself and the child

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                        • #13
                          what r u gonna do?

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                          • #14
                            Most likely roll over unless there's someone who can offer some more assistance...

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                            • #15
                              for me personally...it would be difficult to just give up and roll over. how about some legal advice from a lawyer ...not the family kind...the criminal kind . maybe he will offer some better insight. your ex is breaking the law some how...but how can you expose it without wasting your time and resources. you gotta put out more resources because he's not holding up his end of the financial responsibility. you're gut is telling you that he's lying...if it were me...I would explore those pathways.

                              Comment

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