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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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  #11  
Old 12-08-2018, 08:48 PM
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How your friend decides to calculate his income tax is irrelevant to things (corporation, partnership, sole proprietorship). Income - reasonable business operating expenses = $$$$ is what it is all about. If assets are retained in the corporation then that is for accounting purposes. Spouse is entitled to 50% of assets in the company, particularly if he is sole owner of the corporation. Mistake people commonly make is thinking that they can reduce the amount of money they have to pay the ex based on allowable income tax deductions. Doesn't work that way. Your friend's company financial records (income statements, bank statements, GST/HST filings, payroll records, etc) may come into play.
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  #12  
Old 12-08-2018, 08:54 PM
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Quote:
Originally Posted by arabian View Post
How your friend decides to calculate his income tax is irrelevant to things (corporation, partnership, sole proprietorship). Income - reasonable business operating expenses = $$$$ is what it is all about. If assets are retained in the corporation then that is for accounting purposes. Spouse is entitled to 50% of assets in the company, particularly if he is sole owner of the corporation. Mistake people commonly make is thinking that they can reduce the amount of money they have to pay the ex based on allowable income tax deductions. Doesn't work that way. Your friend's company financial records (income statements, bank statements, GST/HST filings, payroll records, etc) may come into play.
What happens though if the company really does owe more money than it has assets?

Does she have to take half that debt even though he was the sole owner?



He currently is paying $4300 per month on his mortgage which had an original amount of $815000.
I can't see any judge loading her up with debt like how her ex is threatening to make happen....
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  #13  
Old 12-08-2018, 08:59 PM
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He is capable of making $300k per year but is conveniently under employed as of Jan 1 and will be making $20/hour and of course wants to lower his support payments immediately
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  #14  
Old 12-09-2018, 01:24 PM
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Originally Posted by Acadia71 View Post
She wants lump sum so she know she actually gets it. Rather than receive verbal abuse about it every month.
She can just sign up with a maintenance enforcement agency and never face any verbal abuse at all. Trying to get a lump sum is a losing proposition unless it is a relatively small amount of money.

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The corporation has always belonged to only him, so I don't really see why it needs to even be split up. He can take his failing corporation and try and turn it around.....lol
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He is capable of making $300k per year but is conveniently under employed as of Jan 1 and will be making $20/hour and of course wants to lower his support payments immediately
Try to keep your story straight within a given thread. It helps with your credibility.
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  #15  
Old 12-09-2018, 01:35 PM
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She can just sign up with a maintenance enforcement agency and never face any verbal abuse at all. Trying to get a lump sum is a losing proposition unless it is a relatively small amount of money.





Try to keep your story straight within a given thread. It helps with your credibility.
He is deliberately switching jobs in January, from $1200/day to $20/hour.

If you make $300k and spend $400k you’re not going to be successful......sorry for the confusion.
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  #16  
Old 12-09-2018, 02:03 PM
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Quote:
Originally Posted by Acadia71 View Post
He is deliberately switching jobs in January, from $1200/day to $20/hour.
Claim: He is deliberately going from a job that makes $300k per year to a job that makes $40k per year, because he does not want to pay support.

Reality: You tell us, because the claim is obviously ridiculous.

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If you make $300k and spend $400k you’re not going to be successful......sorry for the confusion.
Is the corporation failing or not?
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  #17  
Old 12-09-2018, 02:45 PM
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Quote:
Originally Posted by Janus View Post
Claim: He is deliberately going from a job that makes $300k per year to a job that makes $40k per year, because he does not want to pay support.

Reality: You tell us, because the claim is obviously ridiculous.



Is the corporation failing or not?
OBVIOUSLY that is ridiculous, but that is what he said to her in a text. He is going from a manager job to basically grunt labour because "work got slow".


The corporation all along was basically just him as a sole proprietor "consultant" making his massive day rates. Making $1200 per day is obviously successful.

Where it came into hard times was when he took 1.5 years off consulting and tried to start a store. The store was another numbered company that was "owned" by his original consulting company.....and he ran it into the ground and apparently racked up a bunch of debt. I believe this is where he gets the huge figures that he is threatening to sue her for. $180k is what he claims is her half.

He spent all of 2018 working for the big rates again, but is conveniently going to be under employed in the New Year.....working for $20/hour.


So whether it affects by credibility or not, that's the story. I guess the courts will decide.
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  #18  
Old 12-09-2018, 07:07 PM
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People who work in oilfield as "consultants" have this situation happening right now. It's no fun and putting many people out of business, jobs and homes.

Unless he was a reasonable individual, I betcha dollars-to-doughnuts that he owes CRA massive amounts of money.... (It takes a lot of self-discipline to remit your taxes regularly).

Perhaps he has to work under-the-table as CRA might have seized his bank accounts or he has claimed personal bankruptcy?

In situations like these you likely are only hearing part of the story. If the work situation is industry-specific and he can show that he has tried his best to earn his previous income, no one will fault him as he at least is working.
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