Limited company and divorce

[AlbuttIronStayin]

Hi all,

Noob here in need of some advise.

Sequence of events:

1) Divorce proceeding started. At this point I'm a permanent employee.
2) A few months later - I lost my job.
3) Formed a limited company (as the sole director) and started contracting
4) The limited company has been earning money, but I have not drawn a salary to date.

Divorce still not finalised.

My concern is, where do I stand in terms of:

a) Can the other half get claim share of the company's earnings?
b) Yet to draw a salary, what do I declare as my income?
c) How does the company's earnings reflect on my earning potential (for child maintenance or how the court will use this to split current assets)?
d) Any related advise appreciated.

Cheers

[northernladuk]

First piece of advise
https://www.google.co.uk/search?sour...38&safe=active

Most of the threads above talk about established situations. The fact you've started in middle of proceedings makes this very unique. The threads might give an idea how a company is viewed in a divorce but being after proceedings have been started it could be a completely different kettle of fish.

I think it's professional advise you need here.

Second piece of advise
Use advice instead

[SueEllen]

To be frank you should have paid for legal advice before starting to contract. The advice probably would have been to wait and get any other permanent job if you needed money. I knew someone in a similar situation e.g. lost job during divorce and they were told not to work as they had a decent pay out.

[ASB]

The starting point is the company is marital property and in the mix for asset split.

Your ex can request divdends are taken into account if they so wish in the child support process.

You will probably find you can get good advice from wikivorce provided you are open about the entire circumstances.

[BR14]

ask Brillo, he'll have words of wisdom i'm sure

[Major Hassle]

Levelled the playground since they got rid of legal aid which basically gave a blank cheque to “take whatever you can get”. You started the Ltd since separation I assume which is something in your favour, keep the divis low and offer a reasonable settlement with the Ltd off the table and you should be ok.

Wikivorce is a good forum for research, gen up, arm up and get it sorted quickly.

[radish2008]

There are kids involved. Do what is right for them.

[BrilloPad]

To be frank you should have paid for legal advice before starting to contract. The advice probably would have been to wait and get any other permanent job if you needed money. I knew someone in a similar situation e.g. lost job during divorce and they were told not to work as they had a decent pay out.

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

Without a lot of background it is hard to give advice. I did fight my own ancillary relief application - however I had advice that was effectively at QC level. I would not advise going it alone - I suggest getting the most expensive solicitor you can.

[AlbuttIronStayin]

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.

[northernladuk]

Do what's best for you surely. Doing something you are going to hate just to try avoid paying some dosh is very short termist and doesn't exactly help you move on.