680 News: How Cash Income Impacts Divorce - Featuring Christopher Yu, Shulman & Partners

With the cost of living continuing to rise, more Canadians are turning to cash-based work or side gigs to supplement their income. But while cash payments can seem convenient, they can also complicate matters during a separation or divorce. In a recent interview on 680 News with Ari Rabinovitch, Christopher Yu, Partner at Shulman & Partners LLP, discussed how unreported or hidden cash income can impact divorce proceedings and property division in Ontario. His insights highlight the growing challenge of tracing cash earnings and ensuring fair financial disclosure when relationships break down.

“If the expenses far outweigh what their reported income is, that’s another huge red flag… A lavish lifestyle that doesn’t match that income reported indicates hidden income.”
— Christopher Yu, Partner at Shulman & Partners LLP

During his interview, Christopher explored the complexities of uncovering unreported cash income in divorce cases, a problem that has become increasingly common as more Canadians rely on informal or cash-based work. He explained that while some people turn to cash transactions to reduce taxes or supplement income, these practices can backfire when financial transparency becomes legally required.

In family law, both parties are obligated to complete a financial statement disclosing their income, expenses, and assets. When someone’s reported earnings do not align with their lifestyle, it raises immediate concerns. Christopher pointed out that visible discrepancies, such as claiming to earn a modest salary while driving luxury vehicles or maintaining high-end expenses, can serve as powerful evidence of hidden income.

To address such issues, Christopher described several investigative strategies lawyers may use, such as analyzing spending patterns, cross-referencing financial documents, and scrutinizing lifestyle indicators. In some cases, this process can lead to the discovery of undeclared income, ensuring that financial settlements and support obligations reflect a more accurate picture of each party’s means.

He also offered practical advice to anyone navigating a separation where they suspect cash income is being concealed. He emphasized the importance of documentation—keeping records, observing spending behavior, and noting inconsistencies. These small details can help a lawyer build a stronger financial case, even in the absence of traditional paper trails.

Ultimately, Christopher's comments underscore that transparency is not just a legal requirement, it’s a cornerstone of fairness. While cash income may seem invisible, the lifestyle it supports often tells the real story.

Listen to the full 680 News segment here. 

This media appearance is part of Shulman & Partners LLP’s ongoing contributions to Canadian family law discussions. Explore more of our media features in our In the Media  archive.