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Concealed marital property in a high-asset divorce

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Wednesday, February 8, 2017.

In many British Columbia marriages, one spouse would be in charge of the finances, leaving the other spouse vulnerable in the event of a divorce. The lack of financial skills and a comprehensive knowledge of the marital assets — especially in a high-asset divorce — can leave one spouse ignorant of the other’s attempts to hide assets. People in this position may want to question and examine the property declared by their soon-to-be ex.

Common ways for hiding assets include transferring mutual funds into personal accounts, or to friends who would pay it back after the divorce is finalized. It is possible to shield assets by the overpaying of income tax and arranging with an employer to postpone a promotion, salary raise or bonus. Payment of expected commissions can be delayed in a similar way. Another trick is to frequently withdraw small amounts of cash while grocery shopping because cash withdrawn at the checkout will show as part of the purchases on the receipt.

If the deceptive spouse owns a business, the opportunities to hide assets are even more. Some hold back on issuing invoices to clients, thereby creating false cash flow problems. It is also easy to record false expenses by pre-paying vendors, adding fake employees to the payroll and more. Augmenting business expenses by purchasing costly pieces of art or paying for exotic holiday packages can also reduce the value of marital assets.

It may be comforting for divorcing spouses to know that a seasoned British Columbia divorce lawyer will likely know where to look for concealed marital property. Experienced legal counsel will assist a client in gathering the necessary financial information. A lawyer with substantial work in commercial law will have the skills to understand multifaceted financial portfolios and know how to deal with business valuations and other intricacies of a high-asset divorce.

Source: aol.com, “10 Easy Ways to Hide Assets From Your Spouse“, Robert Pagliarini, Accessed on Feb. 3, 2017

Attorneys Port Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Division of property: Are cash divorce settlements taxable?

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On behalf of Laughlin & Company Lawyers, Mediators posted Division of Property on Tuesday, January 31, 2017.

When a married or common-law couple in British Columbia decides to go their separate ways, it may be wise for each party to retain legal counsel to provide guidance during negotiations. Division of property can be a complicated process, and ignorance of tax and other laws may have unanticipated consequences. An experienced divorce lawyer can explain the tax implications of any monetary offers made by the other party.

A woman recently asked a question about the tax consequences of accepting a cash settlement offer from her former husband. She wanted to know about her tax liability on such a settlement, and whether her ex could use it as a tax deduction. The Real Property Tax Act governs transfers of property between spouses, and the Canada Revenue Agency enforces it. Furthermore, the laws of the various provinces and territories vary with relation to equalization or division of marital property.

Any cash settlement offered for marital property or equalization will not be taxable for the receiver or tax deductible for the giver. The same will apply if it was offered as a lump sum payment for support. However, documenting any payment made during a divorce or separation is best recorded in a legal separation agreement.

This is a complicated field of the law, and securing the support and guidance of an experienced British Columbia divorce lawyer can prevent unanticipated complications. A skilled legal representative can explain the tax implications of any settlement amounts paid or offered during the division of property. The attorney can also document the payments in a separation agreement in a manner that complies with the requirements of all applicable laws.

Source: moneysense.ca, “Do I need to pay tax on my divorce settlement?“, Debbie Hartzman, Jan. 20, 2017

Family Lawyers in Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Child custody, property division and lately — divorce ceremonies

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On behalf of Laughlin & Company Lawyers Mediators posted in Child Custody on Wednesday, January 25, 2017.

January is often reported to be the month when many British Columbia married couples decide it is time to go their separate ways. Some people avoid divorce talk during the holidays — especially couples who have minor children. Although most divorcing couples seek shared child custody, nobody wants their kids to remember all future holidays as the sad time when their parents got divorced.

During January, people planning a divorce will likely get all their financial matters in order, settle as many debts as possible, close shared credit cards and bank accounts and open personal accounts. Being fully informed about family finances by gathering all the financial information may ease the property division process. This month of preparation may be the time to discuss child-related matters.

Although running two households and subjecting kids to two sets of rules can be tough on parents, the best interests of the children are what matters most. A divorce will yield ex-spouses but never ex-children. As long as they are alive, regardless of how many subsequent marriages the parents enter, they will always be the parents of that child. To make the most of the situation, many divorced parents commit to cooperate and be flexible in post-divorce child-related issues.

A divorce can be as complicated as the parties choose to make it, and it is becoming more common for newly divorced couples in British Columbia to arrange divorce ceremonies to say their goodbyes and wish each other the best for the future. While these ceremonies have no connection to family laws, the legal navigation of a divorce can be challenging. For that reason, many people seek the support of a lawyer who is experienced in providing guidance through the complicated areas such as child custody, property division and more.

Source: CBC News British Columbia, “January is a popular time to get divorced, therapists say“, Accessed on Jan. 20, 2017

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Family Lawyers in Coquitlam, British Columbia

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Child support: DNA tests can prove or disprove paternity

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On behalf of Laughlin & Company Lawyers Mediators posted in Child Support on Wednesday, January 18, 2017.

In British Columbia, it is possible for a man to be named the father of a child and burdened with the responsibilities even if he is not the child’s biological father. Men who believe they are not responsible for child support sometimes question paternity. Also, men who want parental rights to children they claim to have fathered may also need to prove paternity. Who is presumed to be a father under British Columbia law?

A man who was married to a woman at the time of the child’s birth, or he died or divorced the mother within 300 days before the child was born will be regarded as the biological father. This can be the case even if the man only married the mother after the child’s birth, but she names him as the father. By admission, a man can also be named as the biological father if he admits to being the father — regardless of whether the couple was married — and if he signed a Child Paternity and Support Act agreement upon the child’s birth.

If a man denies being the father of a child, the burden of proof is on him to show the court that he has no biological connection with the child. DNA testing is available for men in this position. However, if the mother can prove that the man treated the child as his own, the court may continue to hold him responsible for child support.

DNA testing is also available for men who want to prove that they are the biological fathers to gain access and parental rights to their children. However, if a man proves in the court that he is the biological father of a child, he will also become responsible for child support payments. British Columbia family law lawyers can provide valuable guidance to fathers who want to prove or disprove paternity claims.

Source: FindLaw Canada, “DNA testing and paternity issues“, Miriam Yosowich, Accessed on Jan. 14, 2017

Coquitlam, BC Family Lawyers

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Prenuptial agreements can prevent issues in division of property

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On behalf of Laughlin & Company Lawyers, mediators posted Division of Property on Thursday, January 12, 2017.

While conversations about prenuptial agreements used to be uncomfortable, more and more British Columbia couples find it the best way to protect their individual assets — not only in the event of a divorce but also if one spouse should die. Many couples marry a bit later in life, and others marry for a second or subsequent time, and they enter marriages with already acquired assets that need protection in the division of property. Furthermore, prenups are not limited to asset allocation but can include directives on how the couple will handle finances and more during the marriage.

The first requirement of a prenuptial agreement is a comprehensive list of each spouse’s assets that they will bring into the marriage — along with their existing debts. Any assets acquired after the wedding date will be a marital property that will belong to both. Spouses usually have different spending and saving habits, and they can use the prenup to set ground rules related to how they will administrate their incomes and assets. They can also stipulate how they will handle the payment of existing debt.

Matters other than financial, such as commitments and responsibilities with raising children and household tasks, can be addressed in the marital agreement. If one spouse advances his or her education while the other spouse works, they may want to consider the position of the person who put in hours at work in the event of a divorce. Similarly, potential spousal support may be included for one spouse who may become a stay-at-home parent and will be at a financial disadvantage if the marriage ends.

These are just some of the matters to consider when drafting a prenuptial agreement. Each spouse’s legal representative must be present to ensure both spouses sign the document out of free will and that no intimidation or coercion takes place. Experienced British Columbia family law attorneys can provide valuable advice and input during the drafting of the agreement to ensure the fair division of property should one spouse die or in the event of a divorce.

Source: Marriage.com, “Prenuptial Agreement Checklist“, Accessed on Jan. 7, 2017

Find a lawyer at Laughlin Law

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Family Lawyer Coquitlam, BC

Divorce mediation: Can a mediator also be legal advisor?

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A beautiful family who don't need a family lawyer quite yet

On behalf of Laughlin & Company Lawyers Mediators posted in Divorce Mediation on Thursday, January 5, 2017.

British Columbia residents who are considering ending their marriages might have heard that they can avoid the costs and trauma typically associated with litigation. Opting for divorce mediation can provide a platform for peaceful negotiation by which both spouses have the opportunity to discuss their concerns. A qualified divorce mediator will facilitate the negotiations and encourage communication — and compromise when necessary — to help couples reach agreements that suit all concerned.

However, even though a divorce mediator can be a qualified lawyer, to avoid a conflict of interest, he or she may not give legal advice to either spouse. For that, and for valuable input, each party may have his or her legal representative present during mediation sessions. So, how can the mediator help? The experience of a qualified divorce mediator allows him or her to explain the laws related to property division, spousal support, child custody and child support.

After assessing the family dynamics, the mediator can make suggestions that may guide spouses to resolve their issues. These may include parenting plans, and although the court makes decisions about child support, spouses may discuss additional payments. The same goes for spousal support, financial decisions and property division for which couples may find their own solutions. Once the parties understand the laws related to these issues, it may be empowering to be able to make these decisions together rather than leaving it to a judge who has no intimate knowledge of the family.

Throughout negotiations, the respective lawyers can ensure their clients have fair participation. If couples can agree on all issues, their respective divorce lawyers can make sure the settlement agreement complies with the laws of British Columbia. However, if some issues prove unsolvable, couples may choose to let the court decide on those and then come to divorce mediation to draft a final agreement which the lawyers can present to the court.

Source: divorcesupport.about.com, “What Legal Issues Can a Divorce Mediator Discuss?“.

Ask a legal question? Call Laughlin Law!

Family Lawyer Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370