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Family Law questions
7 replies to this topic
Posted 23 May 2020 - 12:12 PM
I have a friend who is going through some issues with her ex. They still have a business together (50/50 shareholders), and the company pays for everything (by loan account).They have kids which live with her.
Things have deteriorated between them, but she doesn't want to pay for legal advice (she doesn't have the cash to pay for it).
1. If they agreed (questionable!!) to have some sort of a financial settlement between them, would each of them be required to have independent legal advice before this was binding? Could her legal costs come out of the settlement? I'm concerned she will agree to less than she might be entitled to.
2. Since they separated, he's been draining the company of money and has a debit loan account. Can this be dealt with in family law; or is it separate as it is a company?
3. Child support - if they both get the same wage from the company, would she be able to get him to pay something towards child support, and is there some sort of formula for that? Would that take into account his other drawings from the company which aren't "income"?
This is in NSW if that makes a difference.
Posted 23 May 2020 - 02:47 PM
if they go through the family court it is federal law, they are able to do it themselves without legal advice but helps to have consent orders drawn up by a solicitor for the court to approve so should not cost too much
Possible to do it without though but may save money in the long run
Either way best to get it done asap
Nsw legal aid should have information on possible free legal advice even if their services are not actually used
Posted 23 May 2020 - 03:34 PM
She needs to take advantage of an initial free consult with a family lawyer, and in her situation I’d get one who can be paid upon settlement, as it sounds like her ex needs to be stopped from draining the company, and frankly you need a lawyer for that sort of complexity. It will save her a sh*tload in the long run.
she can call csa and apply for child support, if they have the same income and she has majority care then yes, she will be entitled to child support. She can call them Monday and start a case. Regarding his other drawings from the company, if it’s assessable income for child support purposes will depend on the tax arrangements, it’s possible it won’t be, she really needs a lawyer.
eta all business accounts need to be changed to ‘two to sign’ immediately
Edited by Dianalynch, 23 May 2020 - 03:52 PM.
Posted 23 May 2020 - 03:43 PM
In this situation it is imperative that she finds the money for legal advice. She will likely end up in a worse position if she doesn't.
You won't get the rights answers on here because there are too many variables.
Posted 24 May 2020 - 12:19 PM
If he is draining the money then she needs to get a lawyer. She can do it without a lawyer but she risks losing a lot of money
Posted 24 May 2020 - 07:31 PM
I am Not a lawyer so please tell your friend to seek legal advice. I work I finance and have dealt with quite a few business clients getting divorced
Family law property settlements are based on assets and liabilities at the time of settlement not separation so she needs to get this done asap if he is draining money / taking out debt etc.
A binding financial agreement needs lawyers advice but you can do consent orders through the court without lawyers if you both agree. They are fairly simple to do.
However the issue is the company. Does she want to stay in business with him? If yes does she trust him?
Is she a director or shareholder of the company or does he have full control?
The equity in the business does count as an asset
However company books are presented on a tax basis so she really does need to get an independent business valuation completed. She should talk to her accountant.
Child support is separate from property settlement, is based on combination of care percentage and income.
I qld be careful if the other parent has a business as it is easy to hide income, she may want to consider a binding child support agreement, although this needs lawyers on both sides.
Defnetely needs to get lawyer advice, they don't need to act for her, she can keep it between herself and her ex, but get the advice.
Posted 30 May 2020 - 07:37 PM
First thing she needs to do is make the acts 'two to sign'
She needs to stop the ex hemorrhaging money.
But yes she needs a lawyer and one that will take Payment on settlement.
Posted 30 May 2020 - 07:51 PM
If he is draining money from their company there may be Division 7A loan issues. She needs to contact their accountant ASAP to find out if this is the case.
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