How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Leon Your Own Question
Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 42626
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
12124641
Type Your Australia Law Question Here...
Leon is online now
A new question is answered every 9 seconds

I had my accountant incorrectly advise me that I couldn't be

Customer Question

I had my accountant incorrectly advise me that I couldn't be a director of my realestate business because only one person who is the licensee can be a director. I believed her and signed off as a director within a short time my husband and business partner of 14 years classed me as nothing more than an employee I'm currently being paid out for the business but had no choice. My accountant denies even telling me the wrong information and just says you signed it. Part of my property consent order also was for 50% net profit from last financial year I just got told it's only $5000 which is ridiculous I have the net profit up to May so believe books have been done to minimise tax to my disadvantage. I need to get my last business bank statement, the last bas and June financials as we should have had at least 50k go in for the Month so I estimated the net profit to be 100k meaning I get 50ish not 5k.
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.

Good Morning,

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.

Is this a family law payout?

Are you suggesting that her advise has cause you not to receive a fair share in the split of the business under family law?

Do you have anything in writing from your accountant?

Customer: replied 1 year ago.
1. Yes
2. No Director No power I was bullied out of my business with no choice other than to be paid out. The sum of money is fair for the business BUT the 50% net profit appears low. I need a few documents from her June finacials last months bank General account and credit card statements and end of year company financials so I can get independently audited How do I obtain these documents ?
3. Not yet.
Expert:  Leon replied 1 year ago.

Good Morning,

Even thought you were bullied out the business was created during the marriage and you would be entitled to a share of the business and if you started it together and it came into existence during eh marriage the split for the business should be 50/50. The ownership is in the shareholding not the directorship so if you still own shares then you are entitled to their value.

You have a right to full disclosure under the Family Law Act and if your ex is not providing it then you can get court orders and subpoenas to make the accountant provide them.

I am not sure if you have been given the information on how family law splits work but here are the steps that are followed:

The steps are:

1. Consideration of whether a property settlement is necessary

The first important consideration for the Court is to determine whether or not it is actually necessary to proceed with a property settlement.

In the vast majority of cases, the Court will decide that it is just and equitable for there to be a property settlement or a change in the ownership of a property. However, in some cases, the Court will decide that each party should simply keep what they presently own.

This may be because:

  • the parties have decided to keep their financial affairs and arrangements totally separate throughout the relationship;
  • the relationship was of a very short duration; or
  • the parties separated many years ago and have organised their affairs on the basis of an informal agreement since that time.

2. Identify and value the assets and liabilities

This involves compiling a list of all assets and liabilities (including superannuation) that are in the individual and/or joint names of you and your former spouse/partner, and attributing a value to them.

Values can be approximate or may be determined by way of a formal valuation, as they should be as accurate as possible. The result should be a table of assets and liabilities which your solicitors will use to determine the value of the total asset pool to be divided.

It is also standard practice to establish what the asset pool was when you first started living together (which may have occurred prior to marriage) to work out any increase in asset values and to establish what each party brought into the relationship (referred to as initial contributions).

3. Assess contributions

Once an asset pool has been established, your solicitor will ask questions about each party’s contributions to the asset pool.

Contributions can be:

  • financial (such as by way of income, mortgage payments or inheritances);
  • non-financial (such as labour to undertake renovations); or
  • by way of being a homemaker and parent.

Contributions are usually calculated as a notional percentage, such as 50/50 or 60/40.

4. Assess “future needs”

Once contributions have been assessed, your solicitors (or the court) will consider what are referred to as the “future needs” of both parties. These include:

  • the age and health of the parties;
  • the earning capacity of the parties;
  • whether one party will have the care of young children;
  • the duration of the marriage or relationship; and
  • any other relevant consideration.

The assessment of future needs will impact the notional percentage reached in Step 2, so that the percentage split of the asset pool may increase or decrease in favour of one or other of the parties to take into account any relevant future needs factors.

5. Is the division of assets just and equitable?

Taking each of the previous steps into account, your solicitors, or the court, will then consider whether the final division of assets as proposed by the parties is just and equitable in all of the circumstances. This may involve assessing the practical effect of any proposed division of the asset pool.

It is form the following link

http://www.landers.com.au/publications/family-and-relationship-law/property-and-financial-settlements-following-separation-or-divorce/

In relation to the accountant, if you can show your ex has ruined the business as director and had you been given the correct advise it would not have happened then you can sue the accountant for negligence.

Not being a director does not affect the Family Law Split. But if the advise caused your ex to ruin the burins having full control then this is an issue due to bad advise.

You need to show evidence of same. Eg. if you have correspondence that set out you both are to be directors and this was not done, then this is something you can use.

If there i nothing in writing then you have a situation it is your work against the accountants on what the instructions were and what they did.

You will need to speak to a solicitor that practices in professional negligence and get more detained advise on what you have to provide them. Then they will assist you with the case.

The law society of QLD will refer you.

Their website is as follows:

http://www.qls.com.au

I hope this makes sense and is of assistance. If there is nothing further

thank you for using my services.

If I have missed anything, or you have any further questions please let me know

If there is anything else in the future please do not hesitate to ask.

Please do not forget to leave positive feedback.

Regards

Leon

Expert:  Leon replied 1 year ago.
Good Afternoon,
I am just following up my response to see if you have anything else to ask. If not please do not forget to rate my work as this is how I am paid. If you do not rate me I am not paid.
I also wish to thank you for using my services.
If I have missed anything, or you have any further questions please let me know
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
Regards
Leon
Expert:  Leon replied 1 year ago.
Good Morning,
I am following up my last post and I hope it was of assistance.
I am only paid if you rate my work. As such I wish to thank you for using my services.
If I have missed anything, or you have any further questions please let me know
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
Regards
Leon

Related Australia Law Questions