Limited company and divorce

[SueEllen]

If there are any children involved that is disgraceful advice. However that is what advisers do.

Nope.

The guy had a decent payout. He could afford to look after his children.

The issue was his ex wanting spousal support when she had already moved in with someone else.

[SueEllen]

Thank all,

There are kids involved (15 and 16 yrs old). I fully intend to do right by them.
I know the costs of raising them, and am perfectly happy to pay the required (plus some).

The problem if the ex is after a the pot of gold, the rainbow and everything in-between.

I have a solicitor, but he's not provided any guidance on the subject other than 'no point in stopping work, the judge will base it on your last income'. My concerns is the contract income allows her to raise her 'grab'. Timing and advise offered at the time of taking the contract wasn't great. The advise I'm after is .. what do I do next? Accept a contract renewal if it's offered? Take a permie job or play the role of the can't find a job? I have savings that will sustain me for some time.

It's more complex than that especially if your spouse gave up work to look after both children.

Anyway as already indicated get better legal advice.

Oh and the savings aren't yours alone....

[kaiser78]

My concern is that currently my limited co has a two director/employee set up and so we draw 2 x salary and dividend etc.

Once my divorce is done I will become a single director salary/dividend set up, which will greatly reduce my household income potential.

[northernladuk]

My concern is that currently my limited co has a two director/employee set up and so we draw 2 x salary and dividend etc.

Once my divorce is done I will become a single director salary/dividend set up, which will greatly reduce my household income potential.

It will??

[kaiser78]

Yep

[Scruff]

If your future ex-wife is a shareholder and Director, it's not so simple...

[CatOnMat]

My concern is that currently my limited co has a two director/employee set up and so we draw 2 x salary and dividend etc.

Once my divorce is done I will become a single director salary/dividend set up, which will greatly reduce my household income potential.

Only if you wanted to maintain the current level of total household income presumably, in that you won’t have the 2nd person’s tax allowance to play with. OTOH whatvyou do take out you keep for yourself rather than sharing so should be able to offset the increased tax burden to some extent?

TBH it will probably be much less in the end than the other financial aspects of divorce in the great scheme of things (legal fees, etc)

[northernladuk]

Yep

Don't they class the money you leave in the company, that you would normally have paid your wife, as income? Your tax strategy is your problem not theirs.