Contractor divorce

[homeandaway]

I'm just looking for some advice on soon-to-start divorce negotiations, so here it goes ....

I separated a few months ago and my ex and I reached an agreement, for the benefit of the kids, without the need to involve lawyers (at £300 or so/hour makes me feel I'm in the wrong job!). But things need to be formalised and I feel the time to be extra generous has to come to an end. As she has a good income, I never had to get all the money out of the company, and if the company income is to be taken as potential income, the difference between what I earn and could earn if I was to take all the money out of the company, aka potential income, is significant. I do want to base my formal proposal on my personal income, rather that the company's. I can sustain this difference for some time so I'm not looking at a short time deal. Obviously it can be argued about the need to keep money in the company due to the perils of contracting and hopefully the difference between pension contributions, as she is a civil servant her pension is pretty decent and mine isn't! But I'm sure she and her lawyer might have a different view, so I'd like to see if anybody has any experience on the matter.

Thanks,

H

Thanks,

H.

[northernladuk]

I thought she could make you disclose the company financials and they can be counted as income? Not sure where I read that but anyway...

Here is a link to all the divorce discussions on the board. Might find something useful there...

https://www.google.co.uk/search?q=di...sm=93&ie=UTF-8

[Mojito]

Money Erodes Amicability

From personal & anecdotal experience, once reasonable sums of money are bandied around in divorce settlements then the 'amicable' relationship breaks down into an acrimonious one. It may not in your case but my advice would be to prepare for the worst, yet hope it does not happen. You need to make sure you're looking after your own interests H - nobody else will.

If your STBX has a big pension pot yet you have none, a starting position would be for you to stuff as much of the cash sitting in your Ltd into a SIPP for yourself as an employee. Not an unreasonable act, particularly if you're the only shareholder to answer to!

Having cash sitting there in the Ltd gives your company the value of AT LEAST the value of its cash reserves. It will be considered an asset that you own as you own the company, and therefore 50% of that asset value belongs to your STBX.

Good luck

[BrilloPad]

Its worth being generous to avoid the lawyers. Remember she holds all the cards. Also remember that getting lawyers involved is like call the fire brigade to your house fire - then watching them pour napalm on it.

And any money is worth it to keep in contact with the kids.

[homeandaway]

Yeah, I do wonder if it's worth fighting for a couple of hundred pounds a month. She's made it clear that if I'm difficult (on her eyes anyway), she will pay in kind, with the kids. I do spend a lot of money in the children though. Take them on holidays and buy them stuff so I'm paying well over what the kids need and guess where the extra money she receives is going to go ...

Don't really have much money in the company. It invests on property loans to me, which I guess it doesn't count as a real investment. Was hoping to use the company as my retirement plan rather than relying on a pension. I've always thought I won't pass 70 so kind of preferred to just build up wealth in the company so I could have more control. Problem is now that if I do that, I will appear as if I'm hiding income. So yeah, maybe a SIPP is the way to go, although I think they are a bit restrictive when it comes to ownership of residential property.

H

[Platypus]

She's made it clear that if I'm difficult (on her eyes anyway), she will pay in kind, with the kids.

Have you by any chance got this in writing?

I think you can now assume she'll pay in kind with the kids whatever happens, whenever she feels like it. And magically, it'll be your fault!

She sounds like a nice lady.

Good luck, but as another poster said, best you prepare for the worst. She's already fired this shot across your bows.

[psychocandy]

Another reason why all women are evil!

[d000hg]

Another reason why all women are evil!

Or how men are so awful they end up with their formerly lovely wife being miserable and bitter!

[Pondlife]

Another reason why all women are evil!

All?

[psychocandy]

Or how men are so awful they end up with their formerly lovely wife being miserable and bitter!

Women need an excuse to be miserable? Thought that was standard mood?