A Husband Started a Small Business and Agreed to Pay

Essay

A husband started a small business and agreed to pay his wife $1700 a month for her bookkeeping services. This was primarily a method of income-splitting for tax purposes. Unfortunately, the business was not as successful as they had imagined, and the husband couldn't afford to pay his wife that much money from the business. The marriage went sour, and after separation, the wife brought an action against the husband demanding back pay for the last 11 months, as well as compensation for loss of future earnings. Explain what defence the husband could best raise in these circumstances.