False Disclosure

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Denisem

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I have a question....last year my ex and I signed our separation agreement with our lawyers. We agreed on most everything. I now have received a tax bill from the government. They claim my ex made more money...a lot more...then the amount we used to determine child support.
I have also received divorce papers and was wondering if the courts would consider this separation agreement void as he did not disclose his correct earning?
 
Did you not see his income tax return when you were drawing up the separation agreement?

I don't think the courts would see your divorce or agreement as void. If you want to have the agreement changed to reflect his true income, for increased child support payments then you will have to either go to court or mutual agree to change the agreement. Child support payments are based on Line 150 of your income tax.
 
False Disclosure

Hi Grace
Thanks for your reply. He submitted a T4 for 2004, but, he works for his fathers company. I am not sure how CCRA determined is income??? I heard the company had an audit by CCRA and was told by a third party they were hiding his real income....third party information....I don't really know what happened. All I do know is now I owe $$$ to CCRA. Would I be able to get the money CCRA wants from me from him in court?
 
Denisem, I'm confused, why would you owe money because he has hidden income to the CCRA. Wouldn't he be the one that owes the govt.
 
Ccra

Ccra

The bill I recieved from CCRA said...an assessment for my 2004 return has been done and my net family income is more than I claimed. We were still together for part of 2004, so I had to claim married for part of the year...I did that so....part of my return is married and part of the return is seperated.

Here is an example.....Jan 2004- June 2004- I claimed x$$ as a combined income....July 2004- Dec 2004 I claimed x$$ as seperated.

Using the copy of his T4 for Jan- June as x$$....but the x$$ is now more than he told me. So CCRA increased my Child tax benifit...I recieved GST for the first time ever and recieved a hydo rebate from the government based the my return. Now they want most of that money back.

I have an appointment with my lawyer on Tuesday.
 
Definitely take action on this. Your lawyer sending a letter to him (or his lawyer) might be all that is needed for him to 'voluntarily' clean up the situation, including informing CCRA that you prepared your return in good faith, and the error is his; not yours. I would also demand the additional child support he should have been paying, retroactively to the date that he began paying it based on his false income amount. If you do have to go to court, the courts will undoubtedly force the retroactive child support, at the very least.
 
false disclossure

false disclossure

I just wanted to let you know you may want to redo your income tax. It doesn't matter if you separated at the beginning, middle or end of the year. You can claim separated for the entire year. I have a very good accountant!
 
Went to Lawyer

Went to Lawyer

Hello

I went to my lawyer about the fiancial disclosure and off to court we go...I really don't want to to this, but I have to provide for my kids. His income is $160,000.00 not the $60,000.00 he disclosed at the time of seperation. Now the CCRA is looking at his company.

Thanks for all the great advice!
 
That is going to make a big difference in the amount of child support. Do you have paperwork to back up this $100,000 difference? You should also be entitled to retro support. I think this is worth pursuing even if it ends up in court. Judges don't usually have much tolerance for this kind of behaviour when it comes to hiding income.
 
Off to court

Off to court

I really don't want to go to court....I am worried that the back child support he owes will be much less than the lawyers and court fees. My lawyer and I are asking for cost....although she ( my lawyer) can't Guarantee I will recieve this money.

My thoughts are....we are going to court because he failed to disclose proper income at time of seperation agreement and now due to that fact we need to revisit this issue of child support. What do you think a judge would order as too the cost claim?

He is paying $500.00 for two children and had an income of $140,000.00,( not the $60,000.00 he claimed at the seperation agreement meeting) my lawyer is also seeking support for myself as my income is only$42,000.00.

Do you think I would be entitled to support? My needs are not really what they used to be, as I now live very tight I have become very low Maintenance!!

Oh....gone are the days of Manicures and pedicures!

I am filling out all my paper work this weekend.....yes staying home for May 24!!! What ever happened to weekends away.....no money...thats what happened...lol...
 
update

update

My lawyer sent a request to my ex's lawyer for his 2004 and 2005 income tax assesment. Ex's lawyer refused to provide. We now have a court date for Aug 3rd. Will the courts force ex to provide income information? All I want is proper child support.....I do not recieve spousal as I signed off on this...against my lawyers advice, because I felt I am able to earn my own income and take care of myself. Although if I find out he did have an income of 50% more than he disclosed at time of seperation agreement, can I go back to court for spousal as well? It has been two very tough years for my children and I. We have given up much....trips...lessons....sometimes life can be hard for us..... but I know I am much happy to be without him.
 
Hi Denisem,

The father is required by the Family Law Rules to provide you with disclosure in regards to his income, so I think the court will absolutely order him to turn over his income tax information. Do you believe that his income tax returns will show an income of $140,000.00, or do you believe that he is only claiming $60,000.00 but actually making $140,000.00 in bonuses, extras, etc.?

If his income tax return shows an income of $140,000.00, he must pay child support based on that number. There is no getting around it. However, if his income tax return only shows an income of $60,000.00, then it's going to be a lot harder to get child support based on a $140,000.00 income. Proving that the father has extra income may be hard to do, depending on what kind of evidence you have. If he owns a business, that will make things even more difficult.

As far as what the judge would order as to costs, the best person to ask is your lawyer. Costs depends on how much time and research goes into preparing for the motion. Another factor is the necessity of the motion. For example, if the motion is brought simply because the father didn't feel like disclosing his income, I believe the judge would likely feel that the motion was completely unnecessary since the issue could have been easily resolved outside of court.

Normally, a one can always go back to court for spousal support. There is no longer a time limit from the date of separation stopping you from doing this.

The following factors may/will come into play:

1. The whole issue of his "real income."
2. The longer it has been since you and the father separated, the harder it will be to obtain spousal support. I see though that it has been "two very tough years" for you, so I'm assuming that you only separated two years ago.
3. If the father lives with a new partner, that will increase his means for support.
4. If you live with a new partner, that will decrease your need for support.
5. Your skill and education. The father may argue that you are able to obtain a position that pays more than $42,000.00 per year.

However, the fact that you signed an agreement waiving spousal support changes things. Having been legally advised not to sign the agreement and signing the agreement anyway, IMO, substantially decreases any chance of obtaining spousal support. BUT, perhaps you could argue that had you known his true income (if you can prove this to the court), you would not have waived spousal support. This is something else to speak with your lawyer about as she knows the circumstances of your case.

Lindsay
 
proof

proof

The only proof I have is an assesment from the office of the Child Tax Benifit department at CRA. I recieved this due to an over payment of the monthly Child Tax Benifit from 2005. My lawyer feels this is the proof.
 
Hi Denisem,

I would assume that the CTB office got this number from his income tax returns and/or notice of assessment, so I would think it is sufficient proof too.

Lindsay
 
income tax

income tax

Would this assessment show income earned or could it be an RRSP cash out?
I don't think he had any RRSP'S left to cash out....if he did he did not disclose that fact at time of seperation agreement.
 
Hi Denisem,

According to this paper on Canada Child Tax Benefit, CCTB is calculated based on:

1. The number of children you have and their ages;
2. The province in which you reside;
3. Your family net income;
4. Your spouse or common law partner's claim for child care expenses for the previous year; and
5. Your child's eligibility for the disability amount.

The government's site on CCTB defines "net family income" as the income stated at line 236 of your income tax return. This site also states the following:

Do I have to file an income tax return if I have no income to report?
Yes. You and your spouse or common-law partner (if you have one) have to file income tax returns reporting that you have no income, so that we can correctly calculate your entitlement to the Canada Child Tax Benefit (CCTB). You have to do this each year to ensure that your CCTB payments continue.

So, although the aforementioned question only deals with parties who don't have an income, it's clear to me that parents must file their ITR each year for the purposes of calculating the correct CCTB benefit. That being said, if the assessment shows that the father's income is $140,000.00, IMO that is his actual income.

Lindsay
 
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