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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 10-25-2014, 11:34 AM
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arabian arabian is offline
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While you may want to sit back and hope things resolve you should be aware that your wife does have legal advice. At the time of my separation my lawyer advised me to "get your hands on as much cash as possible." I did not heed his advice as I was naive and thought that if I drained the company account we would be unable to pay bills. My ex did indeed help himself to the company account. He put everything in his family/g'f's accounts. I will never know if he contemplated simply filing a notice and taking my name off of the business (he was 51% owner and I was 49%). Income we had at the time was primarily a contract between our limited company and a very large Canadian transportation company. My ex went personally bankrupt and left me with the bills. He then went on to do the same work. I had a sheriff seize the remaining equipment in order to pay company bills. This didn't happen overnight. At that time I had a corporate lawyer, a divorce lawyer and a criminal lawyer (ex's g/f was trying to put a peace bond on me due to false accusations - she failed). I made a critical mistake by not suing the company which carried on business with my ex (breach of contract). I was busy trying to find and salvage company assets and I had no money. Despite the Interim Orders for my ex not to dispose of company assets he did so anyhow. When he went bankrupt I became the sole Director of the incorporated company by default. I was liable for all company debt due to Director's liability. It has taken 5 years to deal with everything and things are still not fully resolved.

Yes you might want to wait a while and hope things settle down but do not lose sight of the fact that your wife is currently receiving legal advice and she may not have the same loyalty to your company. She is quite aware that you can divert income away from her. Sure the court will direct you to pay support but everything takes time.

Last edited by arabian; 10-25-2014 at 11:41 AM.
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  #12  
Old 10-25-2014, 07:18 PM
Links17 Links17 is offline
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I think if u just give her 3k a mknth not based on a court order it wont be tax deductible.
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Old 10-27-2014, 09:52 AM
HammerDad HammerDad is offline
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Is she a director or officer of the corporation, or is she just a shareholder? If she is just a shareholder, go to your bank and prepare a new banking agreement/resolution removing her as a banking signatory.

If she is an officer and/or director? The director position is the only one would require involvement of the STBX. If she is a director, you will have to hold a meeting of the shareholders removing her as a director. You will have to give notice of the meeting and what it is about, as she is a shareholder. The amount of notice should be set out in your by-law, not more less than 10 days and not more than 50 days notice the standard amount, but double check your by-law to be sure. You then hold the meeting and remove her as a director. As the majority shareholder, you can out vote her. Then, as sole director you simply remove her as an officer of the corporation. You have your lawyer, or someone who is CORES certified, file the notice of change with the Alberta registry. You take a copy of the filing removing her as a director/officer to your bank and update their records.

That is what is required in Ontario. Alberta may be slightly different. Your corporate lawyer would know exactly what is required.
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  #14  
Old 10-28-2014, 06:44 PM
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Next question.

When i started the company it was new no credit. So I used my personal credit to purchase the vechile. the company treats it as its own writes its off under company expenses and depreciation and the company bank account is making the payments out of the company account.

Now for diclousure purposes I should be using it as a business asset just like my accountant is doing through the business of should I use it as a personal asset.

Next question wife had signed off on the dower right to sell the house ( she is not on title ) can I lower the price without her consent since she had signed the dower?
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Old 10-28-2014, 07:51 PM
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IF your wife signed off dowager rights (with independent legal advice) then you are free to dispose of your home. When it comes time for equalization the loss or gain of this matrimonial asset will be calculated. If you realize a profit on the sale of the house, I believe your ex is entitled, by the matrimonial property act of Alberta, to a percentage of the increase in value of the home.

You can do things 1 or 2 ways and your accountant would be able to advise you as he would have known this when doing your taxes. You can lease the vehicle from yourself to the incorporated company. This is extra bookkeeping. The other way would have been for you to have sold the vehicle to the business. Keep in mind that when you go to dispose of assets owned by the business you have to fill out forms with CRA.

Often people operate a proprietorship alongside of an incorporated company. I believe my ex did that for quite a while. When we divorced he left me with all the corporate debt and merely started up his own proprietorship again. Seems to have worked for him just fine.
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  #16  
Old 11-08-2014, 04:43 PM
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So here she is asking for 5200m for ss for five years to children 3 and 8 lived together since 06 cs is 3771m that is what she wants. They are basing it off of company income of 340/year. I'm willing to offer all assets. House/lake lot/ mutauls/ vehicle averaging about 470000 total worth do you think that would be a good deal. Or what. Also she still says no to Taking name of company so I started a new one. Any advice would be appreciated
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