When is a financial audit required?

[HardWorkingDad]

My ex and I make 10k apart. She makes more. When discussing when we eventually switch to 50/50, she said she wouldn't have to pay offset in CS. That a financial audit would be required because I am self employed. My income fluctuates MAYBE 2k a year. When would a financial audit be required and would this be an uphill battle to get offset?

 

[iona6656]

why does it matter? you're getting 50/50 and you make relatively close to each other. why are you going after this headache?

at roughly 10-20k apart- I don't even think you pay offset.

 

[arabian]

You may be only 10k apart on your NOAs but upon closer examination it may be argued that you are claiming things to reduce your income tax that might be ok with CRA but not kosher with family court.

Check out previous threads on this forum for information on allowable expenses for self-employed for determining income.

 

[Tayken]

10-20k difference and if you are both over 100k in income the judge will possibly order costs against both of you for being silly... As they should! Generally, that number is too small to bother with CS. Most reasonable adults would forgo the 50,000$ in legals to fight over 89$ a month.