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 Chris The Lawyer Your Own Question

Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 18736
Experience:  32 years qualified as a lawyer; LLB, MMgt and FAMINZ.
Type Your New Zealand Law Question Here...
Chris The Lawyer is online now
A new question is answered every 9 seconds

My father is going through a divorce. His partner is trying

Customer Question

My father is going through a divorce. His partner is trying to claim 50% of their assets but not accepting responsibility for any debts/liabilities. The debt in dispute is a very large tax bill relating to a Company that generated 90% of the income to buy their matrimonial assets. She is stating that because she is not a shareholder or director of the Company that the debt relates too she should not have to contribute to pay the debt not even her share of the matrimonial assets.

My question is, is she obliges to pay for half of the tax debt because the tax debt of the Company is part of matrimonial property?
Submitted: 1 year ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 1 year ago.

christhelawyer : HiWelcome to JustAnswer. My first response will follow shortly. Please feel free to follow up if anything is not clear
christhelawyer : If the tax bill is owed by the company then the debt will reduce the value of the company. Is it owed by the company or your father personally?
Customer:

It is owed by the Company. Unfortunately there is significant in the Company besides the shareholders advance which is all the my father and the actually funds have been used to purchase the family home etc.

Customer:

Sorry meant to say significant assets in the Company and my father is the sole director and shareholder of the Company

christhelawyer : Will the company be able to pay the tax?
Customer:

No as there is no assets. I fear Dad will be made responsible as he is the sole director.

Customer:

Does matrimonial law state that all matrimonial assets and liabilities need to be split equally?

christhelawyer : If the tax debt is owed just by the company, which cannot pay the tax, then the company may need to be liquidated. But the directors are not liable for company tax, so your father will not be liable.
christhelawyer : This means that the debt will not be owed by him in most such cases.
Customer:

Yes but that would mean that the director has traded the company into liquidation and possibly when the company is insolvent We do want to pay the tax.

christhelawyer : I understand that but the company debt is separate from personal debt, and where you cannot pay the tax, you are better off liquidating the company.
christhelawyer : this means the assets like the home and chattels will need to be divided equally.
Customer:

But if we didn't want to does the matrimonial act state that both parties need to contribute equally to it?

christhelawyer : The company is a separate legal entity form the individuals. What she has a claim to are the company shares, and if the tax debt means the shares are valueless, then she has no real claim to that asset. However the other personal assets are still divided equally. You cannot use the company debt to offset the personal assets.
Customer:

Eventhough the personal assets were gained by the profits from the Company that owes the debt?

christhelawyer : I am afraid so.
Customer:

Can the Company claw back the shareholders drawings taken to purchase the matrimonial assets?

christhelawyer : That would depend on how the drawings were taken in the company books. If they were taken as shareholders advances thenossibly yes.
christhelawyer : *then possibly yes
Customer:

Thanks. Then how can the other party claim only the assets of the Company?

christhelawyer : It will depend on how the advances were made and you would need to discuss this with your accountant. But you may have a point, that if she is liable for money owed to the company then this will affect what she gets. But if the shareholders advances are repaid then this will not affect her claim to the half share in the personal assets and just mean more of the tax is paid.
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 18736
Experience: 32 years qualified as a lawyer; LLB, MMgt and FAMINZ.
Chris The Lawyer and other New Zealand Law Specialists are ready to help you
Customer: replied 1 year ago.

Hi another matter in this situation is the sale of a rental property owned by both parties. Both parties want to sell by using an independent real estate agent to market the property, but the other party doesn't want to allow the other party to buy the property even if the highest price is offered.


 


My question is can you discriminate someone from buying this property?

Expert:  Chris The Lawyer replied 1 year ago.
Usually the best way around this is to buy through a trusted 3rd party. That is the practical answer, but because of the need to get consent of both, she could block the sale to him. Court ours could get around this but with loss of time and with extra costs
Customer: replied 1 year ago.

I would have thought that kind of discrimation was against Human rights act or something?

Expert:  Chris The Lawyer replied 1 year ago.
In sales of property you can choose who you sell to, subject to the rules about discrimination. But you can choose to not sell to your ex just to be difficult

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • LawNZ

    Other

    Satisfied Customers:

    31
    Trusted advisor to businesses and individuals on company, consumer, employment, IP, and trusts issues, among others.
< Last | Next >
  • /img/opt/shirt.png LawNZ's Avatar

    LawNZ

    Other

    Satisfied Customers:

    31
    Trusted advisor to businesses and individuals on company, consumer, employment, IP, and trusts issues, among others.
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8413
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Counselor at Law

    Satisfied Customers:

    19912
    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    8180
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/jespoag/2008-12-17_222355_jessepic.jpg JPEsq's Avatar

    JPEsq

    Attorney

    Satisfied Customers:

    2131
    Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor
  • http://ww2.justanswer.com/uploads/gsenmartin/2008-04-22_214950_me1.jpg Guillermo J. Senmartin, Esq.'s Avatar

    Guillermo J. Senmartin, Esq.

    Attorney

    Satisfied Customers:

    108
    7+ years of experience handling various legal matters.
 
 
 

Related New Zealand Law Questions