Spouse’s company is my employer
October 2nd, 2012 by Questions
If I have declared bankruptcy and then go to work for my spouse’s company, do I have to report the balance of the business income apart from the monthly pay cheques that I would report?
Posted from: Alberta
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October 02, 2012 at 6:57 pm, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
This is a tricky area. You are allowed to work for your wife, but you are required to be paid a fair and competitive wage. So if you simply disclose a nominal amount of the money within the company as yours and draw the rest out in your spouses name, then you are likely to run into trouble. What could happen is the court could demand a copy of the financials for the business and review the figures to ensure a competitive and fair wage was paid. IF they decide that one wasn’t paid then they will order a figure they thing was fair and reasonable and likely withhold a discharge for a period of time as a result of your trying to manipulate the system to the detriment of your creditors.