Becoming a spousal maintenance cash cow - or not

[jacob]

Hi folks,

I'll try and keep this succint.

If you're likely to be divorced one day, and (after happily paying full share of a child maintenance + any extra bits your child needs directly) you'd rather see most of your income used to grow a business and pay salaries, rather than pay a work shy ex, can it be achieved through a Ltd company?

Eg:
Ltd invoices X
You take a salary of Y
The remaining revenue is spent legitimately employing others and making investments in an attempt to grow the business

I'm perm at the moment but understanding future options and the myriad of complexities one might consider.

I'm not interested in options to divert income, which would look obvious in some assessment, but rather put it to the most worthwhile use.

Thanks

[NotAllThere]

If you don't leave profits in the company, you'll find it hard to grow it and/or take on employees. You can only reduce your own salary so much.

The lower your salary, the lower your CSA payments. The less money your daughter will be mandated to receive. Classy.

If you are not the director and main shareholder of the company, many agencies will be unwilling to take you on.

If you own the company, it is one of your assets, just like a house or pension fund.

2 year old kid. Guess you've not been married for long. Your wife won't be entitled to much, tbh. Play right by the kid.

[NCOTBAC]

Is your line of work going to be the same as your parents? Are they starting an IT consultancy of which you'll be part of? If not it's not a good idea to be mixing family in your business, particularly with this hanging over you.
From previous threads I believe the company money can be considered when talking about your income so its going to be very messy involving your parents as well.

Something to look in to possibly.

[JB3000]

If you don't leave profits in the company, you'll find it hard to grow it and/or take on employees. You can only reduce your own salary so much.

The lower your salary, the lower your CSA payments. The less money your daughter will be mandated to receive. Classy.

If you are not the director and main shareholder of the company, many agencies will be unwilling to take you on.

If you own the company, it is one of your assets, just like a house or pension fund.

2 year old kid. Guess you've not been married for long. Your wife won't be entitled to much, tbh. Play right by the kid.

I agree with all of the above apart from the last paragraph.

Surely if the wife has the kid and is unemployed with no foreseeable source of income then she will be entitled to 60% of everything + spousal maintenance. I don't understand what the length of marriage has got to do with anything.

It sounds like the OP realizes he is going to get absolutely pounded and is creating an artificial business structure specifically to mitigate any future liabilities to his partner.

My advise would be to stay perm and divorce once the 2 year old has started school. This will reduce financial pay out and gives your wife less reasons not to work. This also gives you more time with your daughter (who could easily forget who you are at this age if your wife bans you from seeing her).

Once divorce is done and dusted, then move into lucrative contracting and keeps the rewards for yourself (rather than having to give 60% to your wife in divorce proceedings).

Also, don't get married again! Although I'm sure this is pretty obvious now.

[JB3000]

Is your line of work going to be the same as your parents? Are they starting an IT consultancy of which you'll be part of? If not it's not a good idea to be mixing family in your business, particularly with this hanging over you.
From previous threads I believe the company money can be considered when talking about your income so its going to be very messy involving your parents as well.

Something to look in to possibly.

+1

Combining everything would probably increase the value of your shares, and therefore the pay out to her. I guess you will be putting this 'business' idea on ice very quickly.

[NotAllThere]

...Surely if the wife has the kid and is unemployed with no foreseeable source of income then she will be entitled to 60% of everything + spousal maintenance. I don't understand what the length of marriage has got to do with anything.

See here: https://www.jmw.co.uk/services-for-y...riage-divorce/

The younger she is and the shorter the marriage was, the judge may feel it is more likely she'll be able to find work.

[GhostofTarbera]

This is all about future income

Remember you will only be left with 20% of all assets you have today house / pension / car / savings / shares / record collection etc

Some advice

Book a luxury holiday from your savings (you will lose anyway) take the family - fall in love again and live happily ever after

[GreenMirror]

Whatever you plan regarding divorce, you will be in trouble. Family courts have endless powers to make men suffer and they can do so without worrying about publicity.

I hope you look after your child properly.

You don't say why divorce is inevitable. However I suggest you forget divorce if its you instigating this and if she wants a divorce then do whatever she wants. You can have affairs or visit pros on the quiet.

[HugeWhale]

Maybe more info on this thread

https://forums.contractoruk.com/acco...dividends.html

[LondonManc]

If you hate her, stay perm.