Child maintenance through dividends?

[TheCyclingProgrammer]

get wife off the ltd asap

I'm not sure OP really has any say in that, short of shutting the company down.

[SueEllen]

I'm not sure OP really has any say in that, short of shutting the company down.

Then that's what he should do.

[radish2008]

Then that's what he should do.

So he is a director and she is a director.

How does he close the ltd without her agreeing and wanting/taking a cut ?

[TheCyclingProgrammer]

So he is a director and she is a director.

How does he close the ltd without her agreeing and wanting/taking a cut ?

If she’s a shareholder and her dividends entitle her to a capital distribution on winding up (which they should do to avoid settlements issues) then she is entitled to a cut.

[SueEllen]

So he is a director and she is a director.

How does he close the ltd without her agreeing and wanting/taking a cut ?

You forget he's also an individual so nothing can stop him setting up a new company and contracting through that.

[WordIsBond]

Is it possible to wind down my existing ltd and spin up a new one with 2 classes of shares - one for the director ie me and one my wife who would solely be a shareholder.

Of course you can, if it's mutually agreed. But if you are mutually agreeing, you could probably just use your existing ltd and modify things as needed.

There are many potential problems, as others have noted. There are many reasons why this could go pear-shaped. But without knowing the people involved and the exact details of your situation, none of us could really say what is good and what is bad in your particular case.

The fact that it is taxable to your ex is not necessarily a problem -- it may be cheaper to structure it with enough to compensate her for the tax she would have to pay, than it would be to pay child maintenance out of your after tax income. It partly depends on whether she has other income. Just be aware that the tax hit she'll have needs to be reflected, and that you don't want to leave her short of what she needs to take care of your children.

If things are that amicable between you that you think having her as a shareholder of your company is a good idea, then perhaps you should consider trying to mend your relationship enough that you can stay together. If you can treat each other with respect and consideration, that would be better for the children (and the finances, for that matter). If you can't treat each other well, you'd best not try to be business partners.