Reply to: Limited company and divorce

[northernladuk]

Yep

Don't they class the money you leave in the company, that you would normally have paid your wife, as income? Your tax strategy is your problem not theirs.

[CatOnMat]

My concern is that currently my limited co has a two director/employee set up and so we draw 2 x salary and dividend etc.

Once my divorce is done I will become a single director salary/dividend set up, which will greatly reduce my household income potential.

Only if you wanted to maintain the current level of total household income presumably, in that you won’t have the 2nd person’s tax allowance to play with. OTOH whatvyou do take out you keep for yourself rather than sharing so should be able to offset the increased tax burden to some extent?

TBH it will probably be much less in the end than the other financial aspects of divorce in the great scheme of things (legal fees, etc)

[Scruff]

If your future ex-wife is a shareholder and Director, it's not so simple...

[kaiser78]

Yep

[northernladuk]

My concern is that currently my limited co has a two director/employee set up and so we draw 2 x salary and dividend etc.

Once my divorce is done I will become a single director salary/dividend set up, which will greatly reduce my household income potential.

It will??

[kaiser78]

My concern is that currently my limited co has a two director/employee set up and so we draw 2 x salary and dividend etc.

Once my divorce is done I will become a single director salary/dividend set up, which will greatly reduce my household income potential.

[SueEllen]

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.

It's more complex than that especially if your spouse gave up work to look after both children.

Anyway as already indicated get better legal advice.

Oh and the savings aren't yours alone....

[SueEllen]

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

Nope.

The guy had a decent payout. He could afford to look after his children.

The issue was his ex wanting spousal support when she had already moved in with someone else.

[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.

[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.

[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.

[radish2008]

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

[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.

[BR14]

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

[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.