Divorce and filling in form E

[kaiser78]

Fair enough - didn't know.

An accountant is the best place to start, especially if they've been through a limited company divorce process before. It may be that you settle on a 70/30 shares split and that's the divorce settlement - obviously nothing to do with us and your account and/or solicitor would be able to talk you through that. Good luck with it all

Thanks - yes speaking to accountant and solicitor this week

[LondonManc]

I don't hate her nor do I want to get a low paid job. I just want to protect the company funds as much as I can. I will ask my accountant although wanted to see how the impartial aspects work first.

Fair enough - didn't know.

An accountant is the best place to start, especially if they've been through a limited company divorce process before. It may be that you settle on a 70/30 shares split and that's the divorce settlement - obviously nothing to do with us and your account and/or solicitor would be able to talk you through that. Good luck with it all

[kaiser78]

If you hate her, stop contracting and take a low paid job near wherever you end up living.

In terms of income, have you made a start on your accounts yet?
What shareholding and salary do you both have?
Have you run any payslips yet?

If you're 8 months in, say based on 160 days worked so far, you'll have:
£300 * 160 * 1.2 = £57,600
You'll have £8928 VAT to pay on that in your first year limited - best just working with the £48,000 ex VAT for now and treat any remaining VAT after HMRC payments as a bonus.

From your £48,000, you'll need to subtract 8 months worth of salary for you both.
Then your business mileage and any other legitimate expenses.
Mileage is 45p/mile for first 10,000 then 25p thereafter.

Don't forget a predicted accountancy cost of £1,000 pa, plus any other business insurances and business fees you have - business cards, other corporate stationery, website cost, etc.

Depending on your expenses, you'll have noticed that 48k reduce significantly - c1.4k combined salary per month, etc.

Do yourself a favour and boot up Excel and create a basic revenue and cost report. Completely ignore VAT as after your first year it's not worth considering that you gain from it.

Revenue = £300 * days worked

Costs include:
Salary - x months * salaries
Expenses - car mileage allowance, insurances, phone, accommodation, etc. Don't forget to include an estimated £1k for an accountant to pick this up and fix for you.

Also take into account dividends that you've probably already taken that will be offset at the end of the year when you should take them. That in itself isn't a problem and is a common thing. You need to demonstrate that the £300/day is a lot worse than the figure looks on the face of it. If you were paid every day that would be nearly £110k - reality dictates it's probably max £75k. Then take your expenses off (without salary) and show what you actually get to take home, i.e. salary, then dividends (taking into account corp tax and dividend tax).

Have you got a tax code???

I don't hate her nor do I want to get a low paid job. I just want to protect the company funds as much as I can. I will ask my accountant although wanted to see how the impartial aspects work first.

[LondonManc]

If you hate her, stop contracting and take a low paid job near wherever you end up living.

In terms of income, have you made a start on your accounts yet?
What shareholding and salary do you both have?
Have you run any payslips yet?

If you're 8 months in, say based on 160 days worked so far, you'll have:
£300 * 160 * 1.2 = £57,600
You'll have £8928 VAT to pay on that in your first year limited - best just working with the £48,000 ex VAT for now and treat any remaining VAT after HMRC payments as a bonus.

From your £48,000, you'll need to subtract 8 months worth of salary for you both.
Then your business mileage and any other legitimate expenses.
Mileage is 45p/mile for first 10,000 then 25p thereafter.

Don't forget a predicted accountancy cost of £1,000 pa, plus any other business insurances and business fees you have - business cards, other corporate stationery, website cost, etc.

Depending on your expenses, you'll have noticed that 48k reduce significantly - c1.4k combined salary per month, etc.

Do yourself a favour and boot up Excel and create a basic revenue and cost report. Completely ignore VAT as after your first year it's not worth considering that you gain from it.

Revenue = £300 * days worked

Costs include:
Salary - x months * salaries
Expenses - car mileage allowance, insurances, phone, accommodation, etc. Don't forget to include an estimated £1k for an accountant to pick this up and fix for you.

Also take into account dividends that you've probably already taken that will be offset at the end of the year when you should take them. That in itself isn't a problem and is a common thing. You need to demonstrate that the £300/day is a lot worse than the figure looks on the face of it. If you were paid every day that would be nearly £110k - reality dictates it's probably max £75k. Then take your expenses off (without salary) and show what you actually get to take home, i.e. salary, then dividends (taking into account corp tax and dividend tax).

Have you got a tax code???

[kaiser78]

What is the best way to have these discussions with your accountant if say divorcing husband and wife are both directors and if the one director who brings in the income through contacts wants to protect the pot ?
Does the accountant not need to remain impartial ?

[ASB]

If you are open, honest, answer questions posed with full disclosure then the fora herewill give solid advice.

https://www.wikivorce.com/divorce/

If you are not it won't end well.

If you think "i know i will put down a genuinely paid salary of 10k and leave the rest in the company" that won't end well.

If you think "everything we have is joint property" thats a start point. The question is how it gets split. With a non working wife and limited funds it may become an issue. The first point however is ensuring kids are properly housed, funded.

Sensible advice needs a lot of personal info about your situation.

Judges will always look for clean break settlements if funds allow.

[northernladuk]

Northernlad - I'm picking up the accounting side of things myself. Given how early in the life of the company it is, there have been no accounts or returns submitted yet so it's hard to know what to put on the form.

Ah yes, usually the first mistake a contractor makes. I'd say you aren't looking at your VAT post.

http://forums.contractoruk.com/accou...ml#post2386522

But good luck with accounting using a free public forum. What could go wrong.

[l35kee]

Northernlad - I'm picking up the accounting side of things myself. Given how early in the life of the company it is, there have been no accounts or returns submitted yet so it's hard to know what to put on the form.

I think that's why he suggested an accountant! There is more than just submitting returns.

[lpop]

I'm filling it in ahead of talking through with my solicitor. There are children involved but hopefully we can keep it out of court. It's complicated further as my wife can't work so is looking for spousal maintenance or a financial order of some sort.

Northernlad - I'm picking up the accounting side of things myself. Given how early in the life of the company it is, there have been no accounts or returns submitted yet so it's hard to know what to put on the form.

[BrilloPad]

You need to talk this through with your solicitor.

I did it without a solicitor - but then I had the best McKenzie friend in the UK. Its a very complex area.

I suggest you are honest.

Are there children involved?

[northernladuk]

Why don't you have an accountant?

[lpop]

Hello,

My wife has recently filed for divorce and has requested I complete a Financial statement (form E) for a financial order under the matrimonial causes act.

I've only been operating through a limited company since April so there's no real history and I have no Accountant so I'm trying to fill the form in before sending to my Solicitor for review.

It's a bit of a vague question but does anyone have experience and advice as to how to fill the form in? I'm scratching my head as to what to put in each section.

Thanks!