I own a variety store business for the previous 15 years. My spouse has been doing the bookeeping for this business for this time frame. Other than that, she has no involvement in the business at all. I work in the business full time plus hours, do all the running around (acquiring merchandise) hiring, training and redirecting staff etc. I do not take a wage for myself. Basically my spouse does the books for several business and we live off her wage. She does take a modest wage from my company for her book keeping fees and for us to live off. When we seperated, which was 2 months ago, she left without telling me and abandoned the company, books etc. I had to quickly hire someone to do payroll and the books as I do not know any of this. Long story short, now she is starting to speak with me again and she is demanding that I put her back on the payroll and let her continue to do the books. Does she have the rights to do this? I understand that she is going to get half of the value of the business when the financials are arranged, but does she have a right to the business and the decisions as well right now? after she has left for 2 months without a word?
question about small business and divorce?
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Rioe
Well-known member
Are you sole proprietor or is she a partner? If she was the equivalent of just an employee, it's up to you if you re-hire her or not. Personally, I wouldn't touch that with a ten and a half foot pole. You are separated now, and that includes financially. Aside from owing her half of the increase in value of the business over the course of the marriage, which you deal with in equalization, you should not do anything that would confuse the separation of your finances. Tell her you'll write her a nice letter of reference.
Well that is a bit of a tricky situation. I incorporated the business and was listed as 100% shareholder. It has just come to light during this seperation that I no longer have a corportation, it was disolved because my "book keeper" did not file the corporate taxes. I was unaware of this, I know, very stupid, I can plainly see that now. In any case I have a CA that is looking into resolving this for the previous years that need to be filed. In the meantime, I am just a business, but I would assume that if I was 100% shareholder of the corporation I would be the sole proprietor? Her name is listed on some of the documents that come from CRA such as HST remittance, but that was just because she would do the books and sometimes have to make inquiries. So I guess she was just an employee then? And no, I do not want her anywhere near the business, it is my job and only source of income. I just wasnt sure if she could get a court order to make decisions regarding the business because she was my spouse, and took a wage. She was paid by payroll not owners draw.
she was an employee from what you say, your CA would also tell you not to rehire her, i am sure your lawyer would tell you that too, but since its a business i would hire a very competent lawyer right away and make every thing legal. waiting on this could hurt you in the long run.
Rioe
Well-known member
Making demands like that leads me to think she just wants an opportunity to siphon the money she feels she's due away from the company on her own terms. I hope you have removed her from any signing authority and cancelled any card she may have to your business account, etc? If not, do it now! Same with your personal financial stuff, though there's probably less room for damage there.
If she complains about wrongful termination, throw the 'error' about not filing corporate taxes at her.
If she complains about wrongful termination, throw the 'error' about not filing corporate taxes at her.
mcdreamy
Moderator
Update the returns, and file Articles of Revival. Many Ontario corporations were dissolved in the early 90's due to failure to file returns. I think the fees are about $330 to file Articles of Revival, but once done, your corporation will be as it once was.
Once you have your returns filed, paid the return fees, and obtained the Ministry's consent, you can file the Articles yourself, the form is on the internet here
Ontario Central Forms Repository - Form Identification
You might need a NUANS if you were dissolved more than 10 years ago. Take a day off work and file the Articles in Toronto - they'll be done in an hour.
eta: if you were 100% shareholder, she was an employee.
that plus absent from work without notice for over two months = grounds for fired with cause.
arabian
New member
CRA does not tell you who to hire or fire
As President of your corporation you are responsible to have corporate tax returns done, not your bookkeeper. You are the one that will be held responsible for the returns, not your bookkeeper.
The wages you pay your bookkeeper are of course in line with what you paid the previous one or you know you will be facing off about that in family court.
As President of your corporation you are responsible to have corporate tax returns done, not your bookkeeper. You are the one that will be held responsible for the returns, not your bookkeeper.
The wages you pay your bookkeeper are of course in line with what you paid the previous one or you know you will be facing off about that in family court.
OrleansLawyer
Active member
You have an employee who left their job for two months without notice. Most people call that "quitting". While you are free to run your business how you like, most people do not re-hire employees who quit without notice.
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