WA Ex Hiding Assets with New Business Name - Property Settlement?

[Becboo]

Hi all,

I'm hoping someone can help me. My ex has set up a new business name (sole trader) to pay minimum child support and avoid paying spousal maintenance. Until recently, I could see all of the accounts activity and business activity (which infuriated him as he was unaware this was the case). At the time of separation and months prior, he was invoicing a company over $5000 per week for him and another employee. Would he have to disclose this information?

Conveniently, he became unemployed then casually employed by a colleague who he had been thinking about going into business with prior to him walking out.

We have a one-year-old son and I have been contributing towards the growth of the business since its set up and thus I have and own all of the intellectual property. We sold a rental property in June which he received $56K for in his bank account. He has cut off all of my access to money and has spent ridiculous amounts buying gifts for family members, new furniture, paying out his car loan, creating fake loan agreements, etc, etc.

Can he do this and how would this be viewed by the court? I've had to return gifts for my son's 1st birthday to department stores to buy nappies for him. I've maxed one of my credit cards but don't want to touch the other one as its for emergencies.

Also what would his lawyer be advising him to do given this information?

I appreciate all the help I can get in regards to this matter and in regards to property settlement.

 

[Lance]

Each party in family law proceedings has a duty of disclosure, therefore they must provide full and frank disclosure. If you feel the other party are not being full and frank in their disclosure then you may want to consider issuing a subpoena to view the business records.

Attached is a link to the self litigants handbook that might help you with the process:
http://www.familycourt.wa.gov.au/_files/SRL%20Handbooks/Handbook_Property_Cases.pdf

And the following link is to the pre-action procedures:
http://www.familycourt.gov.au/wps/wcm/connect/7db1162a-8de7-44f0-8b2c-0fc65b953d3f/BRPREFIN_010309+V3a.pdf?MOD=AJPERES&CONVERT_TO=url&CACHEID=ROOTWORKSPACE-7db1162a-8de7-44f0-8b2c-0fc65b953d3f-lhWylWI




.

 

[running]

Hi Bec,

I had some similar problems with ex (more dismantling or hiding assets, and money etc). During mediation, I was told that it was too hard to chase these assets, as it would cost me more money trying to maybe prove it than I would get back. Very disheartening, as it had already cost me $50,000 in lawyer's fees.

As for child support, you can apply for a change of assessment. There are rules now, so that they can look further into the dodgy child-support avoiders. This is a link to part of the change of assessment
2.6.14 Reason 8 - a Parent's Income, Property, Financial Resources, or Earning Capacity | Child Support Guide

I am about to apply, as my ex pays minimal child support (he only declares around $50K but earns 3 times that), but as I am earning more, I estimate that I will have to pay him next financial year if I don't apply now.

Actually, he hasn't paid anything yet, as he initially transferred half of his income into my name through a family partnership (on top of my own income), but he is ordered to start paying ($20 per week - yay).

 

[SamanthaJay]

Hi Bec,



Actually he hasn't paid anything yet, as he initially transferred half of his income into my name through a family partnership (on top of my own income), but he is ordered to start paying ($20 per week - yay).

Hi Running

Just a heads up, I hope the tax on the amount he has transferred into your name via the family partnership has been paid. I had a family partnership with my self employed ex and I was working for an employee as well. My tax was paid for my own employment (via my employer) but the ex has left me with the tax bill for 'my share' (that I never saw a cent of) of the partnership.

Once I realised he wasn't going to pay the tax, luckily for me we were a tax return behind and I was able to get the accountant to back date a disolution of the partnership by a year so I avoided a 2nd year of a huge tax bill.

 

[running]

Samantha Jay, This is exactly what happened to me. He transferred half for the first year and then 'nicely' informed me that he had done the same for the second year (during property settlement). And yes, I had already paid the tax on my own income, so whatever he transferred was going to attract about 37% tax. However, I worked it into property settlement that he had to reverse those sums.

You can also apply to ATO for an amendment to that year's distribution of partnership income. You may still be able to.

 

[SamanthaJay]

Hmm, I'll talk to my accountant about that. Thanks.

 

[CookieMonster]

Becboo, how did you end up going with your issue on hiding assets and spending money? What about the dodgy child support change of assessment?
It is disgusting that these guys get away with this behaviour!