how to imupte the correct amount of income

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freespirit

New member
Hi,
I am a house wife and I have two children last year I went to my moms so i could recover from post pregnancy. During that time my husband start taking out money from our joint line of credit without my knowledge and as soon as he was done he served me with divorce papers. we had small arguments like every other couple but this was very unexpected.

My husband is a contractor in IT. there is no sub contractor / share holder or any employee working in his company. last year he earned 90,000 working for a company puls 60,000 that he took out from our from our joint line of credit. However after getting his disclosure, I saw that when filing for his taxes he showed only 35000 as his income. He took rest of the amount out in cash from his business and our joint line of credit. There is no way to trace where that money went. can some one tell me what argument I can put in front of the judge so he can impute the right amount of income for my husband. right now he is not paying any child or sposual support and my legal aid lawyer is not helping at all in this matter. she is just going by what he is saying.

can someone please help me in this matter.
 
the money he took out from the line of credit doesnt count as income. If his company made 90000 last year then allowable expenses etc have to be taken off that. You are not giving us the full picture here so hard to give anything but general advice.

If you think he earned more then that then its up to you to prove it. A judge will not impute an income on him just because you think he earned more. The judge will want the solid proof.

On the matter of SS and CS. You do realize that you have to now find work to support your kids also? You cannot have an income of zero or he may ask a juddge to impute an income on you. You may be entitled to short term SS, depends of length of time together and a few other factors.
 
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It is JOINT line of credit, he can take the money out; so could you. What he did was unethical but not illegal. It is a loan, not income.

He is working under contract for one employer, so there will be clear financial records from that employer. Because he is a sole proprietor he can claim a number of expenses on his tax return. For IT, claiming over half of the income for expenses seems excessive.

Do you have any proof whatsoever that he made 90k last year, or is this just something you heard?
 
Thanks Standing on the Sideline and Mess for replying. Let me give you guys more detail and I hope that helps

I was a graphic designer and just found my Ideal job when I first got pregnant. Due to some complications in my pregnancy, my husband and I decided that I would stay home and look after the kids while he would provide for the family. However when our first child turned 2, I started a small boutique from home after consulting my husband. An year later when I got pregnant with my second child my husband attitude started to change toward me. He told me that I need to stop my business. I thought that if i do what he wants then maybe things would go back to the way they were. So as soon as I finished my business within 2 months my husband send me the divorce papers. so Right now I am in the processes of updating my studies so I could support my children a and my self.

As for the prove for his income, from his Disclosure (Bank statements of personal and business account)of 2011 from Jan-Dec it shows that he earned $115768.14 and in 2012 from April-October he earned 77369.63. He is not giving rest of the disclosure or telling what he is currently earning by saying its not relevant.

The papers that he filed for divorce shows that his monthly expense is 4853.43 and yearly is 55,001.16.

His monthly income is $3235.92 and yearly is $38,831.04

( Sorry In previous thread I wrote the number from my memory)

I hope this help.

Again I really appreciate you help
 
2011: $115,768 per year
2012: $77, 369 / 7 months = $11,052 per month; pro-rated to $132,632 per year

Average of 2011-2012: $124,200

The papers that he filed for divorce shows that his monthly expense is 4853.43 and yearly is 55,001.16.

His monthly income is $3235.92 and yearly is $38,831.04
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Even if his numbers are genuine, I see an average income of $124k - $38k expenses = $86k.

Apparently you have bank statements for personal and business accounts that show the income for 2011-2012. You should be able to see on the business statements what money was being paid out as expense. This is not sufficient for legal proof on his part, he should really be providing audited statements. However this would give you a ballpark figure to compare to his claimed expenses.

Make comparisons based on the statements you have. In the meantime, require from his lawyer that he provide 3 years of income tax returns including the statement of business activities that he must file with CRA as a sole proprietor/self-employed. If this is not forthcoming, you request at your case conference that the judge make an order for the tax returns to be provided to you.
 
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