Types of Business Structures and Division of Assets in Divorce: Legal Questions Answered

Understanding Liability for Different Business Structures

Question 1.
Three friends Josh, Zandra and Malik are having a discussion about the types of business structures and the liability aspect of each type.
a. Zandra sees many advantages in forming a sole proprietorship. She thinks that the business is separate from the owner and therefore any debts belong solely to the business .Explain to Zandra the conceptof unlimited liability and if she is correct that any debts that a sole proprietor accrues belong only to the business.
b. Josh thinks that being in a general partnership is better for him as he sees more advantages in having another person in the business. His understanding is that any profits of the partnership are always splitevenly, explain if this is always the case. Also if a 3rd party sues the partnership ,he thinks that the liability of each partner will be spilt evenly and each partner will be liable only for their own share, explain if this is accurate
c. Malik thinks that a limited partnership is the best type, as the partnership can have access to the funds invested by the limited partners. He thinks that every partner, whether a general or a limited partner, shares equally in the liability of all debts. Again explain if this is an accurate understanding .
d. Josh, Zandra and Malik are also wondering about forming a corporation. They are aware that there are more formalities and regulations involved but they would like to know what is the main advantage of forming a corporation ,explain this to them.

Question 2.
Julia and Noah were married for 13 years. They have now separated.On valuation day, Julia the following assets- the matrimonial home held jointly with Noah worth $800,000, with a mortgage held jointly with Noah of $400,000 ,investments worth $36,000 in her name alone, and RRSP $50,000 in her name alone. The antiques crystal bowls shebought before she was married, are now worth $4,000. At the date of marriage she had a savings account of $16,000 and a credit card debt of $6,000. She also bought antiques crystal bowls worth $2,000. On valuation day, Noah owned the following assets- the matrimonial home held jointly withJulia worth $800,000 with a mortgage held jointly with Julia of $400,000, a stock portfolio worth $40,000 in his name alone, RRSP $80,000 in his name alone and antiques he had inherited from his grandfather uncle during the marriage now worth $20,000.At the date of marriage he had savings of $18,000 and student debt of $12,000.
6
Calculate the followingNote you MUST show ALL your workings to get full marks.
a. Each person’s net worth on valuation day.
b. Each person’s net family property on valuation day.
c. Calculate the equalization payment
d. Calculate each person new net worth after the equalisation payment.
Total 14 marks
Question 3.
Find the case Godwin V Bolsco, 1993 CanLII 9312(ON CJ) and answer the following questions.
a. What type of support obligation was discussed here?
b. State the name AND section number of the relevant act that was applied in this case .
c. In the case, under that section, three questions were required to be asked, what were those three questions?
d. The act refers to a minor, explain what the word minor means.
e. One of the respondents’ complaints was that the way their mother brought them up affected them negatively, explain one of their arguments.
f. Explain one reason why the judge found that the applicant to be in financial need.
g. The judge found in favour of the applicant and ordered an interim order be made, explain what an interim order is?