My ex is hiding money, how do I prove it?
When the separation becomes contentious and the parties fail to reach an agreement, in mediation for example, it sometimes happens that one of the two has doubts that the opposing party hides income. In these cases, how to prove it? Isabelle Hamel-Hébert, lawyer, has several things to tell us!
Isabelle Hamel-Hébert is the founder of Article 23, a website that aims to support people who wish to defend themselves in court. “The problem of an ex hiding income seems quite prevalent in the context of a parent seeking child support. Sometimes the paying parent feels like they're giving their ex money instead of their kids,” she notes.
In order to prove our suspicions, or ultimately realize that our perceptions are erroneous, we must know where to do our research and checks. To achieve this, you have to start a legal process to fix the alimony, since it is only in this way that you can demand documents from the opposing party to which you would probably not have had access otherwise. /p>
The 10 checks to do
- Ask for Equifax and TransUnion reports so you can check all active accounts, loans, and credit cards the ex has and make sure to ask for transaction records .
- Obtain account statements from each credit card so that you can investigate and see expenses such as: business records, Square, Stripe or PayPal accounts that could suggest payments are being received. Also look for recurring pre-authorized payments, which can help prove that the person is living beyond their means.
- Ask for full tax returns, including those from company if applicable and the appendices.
- Ensure that the documents you receive are the real documents. “It is sometimes seen in court that people file false documents. So you have to check with the notices of assessment.”
- In all tax returns provided, look at the lines for interest expense, carrying charges, capital gains and losses. In the appendices, we look at the investment accounts, and the T5 and T3 tax receipts. “If there is an amount entered in these lines, even a small one, it means that the person has investments. If this is the case, it is necessary to do business with a professional to make the complete financial arrangement.
- Also look at the federal line T1135. If it is checked, it means that the person has more than $100,000 in assets abroad.
- Check if the person has rental income. “Unfortunately, what we often see is a difference between the price at which housing is advertised versus the amount that is declared.”
- Check the company's financial statements, dividends, charges salary and employee T4s, and investigate possible nominees.
- Ask to see the passport to see the number of trips per year. It can be used to prove a certain illogical standard of living in relation to the declared income.
- If necessary, do business with a CFDS expert, who can provide an in-depth demonstration in the most complex cases.
In the end, the judicial process ensures that we have a portrait of the real situation, in complete transparency, and also guarantees that we have a neutral third party to decide. Once this sometimes difficult period is over, it often becomes easier to communicate with the ex without animosity since the repetitive and contentious questions concerning finances are closed.
Expert to consult if necessary: CFDS – Chartered Financial Divorce Specialist https://www.afds.ca/directory/
More and more mothers are raising their children alone in Quebec. The series Challenges of single mothers is aimed at these women and aims to help them meet their particular challenges.< /p>
