Legal issue - Ltd Co. and getting divorced

[nevergoingtopay]

He can slao try here

http://www.fnf.org.uk/law-and-policy...ec-maintenance

[d000hg]

Maybe court doesn't believe a 1-man contractor company is a real business. In a way for a standard contractor that's a fair call, if the laws weren't as they are we wouldn't have to go through this rigmarole.

Maybe he should hire an employee on minimum wage to prove he's a 'proper' business.

[nevergoingtopay]

I recommend a guy, PM me for his email

he was earning £120 an hour when he got divorced....

Now does divorce and kids advice, he can tell you all the rules on what you will be paying.

[chrisl]

90K is what he would have in salary and divs after corp tax and expenses etc. What he would get in his pocket (obviously HR tax would have to come off this is the who lot was taken)

Salary is set at minimum wage already and then he takes dividends around £30k making his total earnings £40k. Therefore his payslips only show what he has taken out the company and not whats left back as the held back dividend.
The other 50k being left in the company is held back dividends which he can take in the future at some point.

He wants to support his kids but what the courts have asked him to pay is the same as a small yearly salary for some people, the ex could vertually live off it and never work again, its over the top. He wants to support his kids not his ex's life style.

Yes he had a lawlor but they didnt seem to get anywhere in court.

I think he will appeal, he needs to find someone who knows what they are talking about first, a lawer specialising in and knows how contracts get paid through ltd companies.

I have been here myself and what he needs to do is set a salary for himself and get payslips etc issued that show that. Dividends can not be used for this only the salary, Dividends are dependant on profits.

I assume he took a lawyer with him to court if not he got that very wrong!

Also I closed my limited company and started a new one, stops any talk of that company being jointly owned etc.

Is the 90K after taxes and expenses have been paid?

I pay a lot for my two kids and don't have my house as this was the settlement.

Tell your friend divorces cost a lot, but are worth every penny….

[BrilloPad]

even more off topic, you don't hear much about rick women havnig to pay out huge sums to their ex husbands. this must happen reasonably frequently, right?

It can happen : but not often.

A friend of mine was a house husband : gave up a career so his wife could be a top lawyer. He raised there daughter to age 4. She then got custody. She she he was allowed to see the child if he made no financial claim on her...

[BrilloPad]

Slightly off topic, but there's one thing I can never get my around when it comes to divorce.

Cliche scenario:

1. Man and woman get married.
2. Man builds up company, but is only able to do so with support of wife who looks after home and family.
3. Man and woman get divorced.
4. Woman gets share of man's assets and future earnings, because of her input into the partnership. Fair enough, I get that. But if the man has to effectively continue to contribute his part of the deal, how come the woman doesn't have to continue cooking his meals and doing his washing, as that was her side of the deal!?!?

When you have worked it out you will be alot wiser.

[nevergoingtopay]

I wonder if anyone here could help or know someone to contact who could help. I am posting this on behalf of a friend.

He split with his wife and recently had a court hearing re: maintance payments to his ex.

His situation is that he is a one man band limited company like most of you taking min wage salary and the rest dividends. Income could be around 90k per year although about 60% of the dividends are held back in the company so really he only receives £40k each year. The other £50k is held back in the company.

Now after the court hearing, the judge has said he has to pay a large maintance sum to his ex based on the full £90k which the company has. He is furious about this as he believes it should only be on his income he personally receives of £40k.
Whatever happends to the company funds should not come into it? After all the company could have outgoings etc which this held back money could be used for.

Now obviously this is a legal issue but does anyone have any knowledge on this or know anyone who would specialise in this area.

He is happy to appeal against the courts if he knows he has grounds to stand on but just wants to know where he actually stands.

How can the courts justify he in effect has £90k per year but he only receives pay of £40k?

I have been here myself and what he needs to do is set a salary for himself and get payslips etc issued that show that. Dividends can not be used for this only the salary, Dividends are dependant on profits.

I assume he took a lawyer with him to court if not he got that very wrong!

Also I closed my limited company and started a new one, stops any talk of that company being jointly owned etc.

Is the 90K after taxes and expenses have been paid?

I pay a lot for my two kids and don't have my house as this was the settlement.

Tell your friend divorces cost a lot, but are worth every penny….

[GardenGirl]

Get a good Solicitor and appeal.

I don't see why a court should base it on your companies money it should be based on what you take out because effectively they are forcing you to take more money out and hit a higher tax bracket to pay maintenance which doesn't seem right to me.

[Cheshire Cat]

even more off topic, you don't hear much about rick women havnig to pay out huge sums to their ex husbands. this must happen reasonably frequently, right?

[dang65]

Slightly off topic, but there's one thing I can never get my around when it comes to divorce.

Cliche scenario:

1. Man and woman get married.
2. Man builds up company, but is only able to do so with support of wife who looks after home and family.
3. Man and woman get divorced.
4. Woman gets share of man's assets and future earnings, because of her input into the partnership. Fair enough, I get that. But if the man has to effectively continue to contribute his part of the deal, how come the woman doesn't have to continue cooking his meals and doing his washing, as that was her side of the deal!?!?

[BrilloPad]

Is the 90k "Income" after tax? What happens to the other 50k usually : distributed as divs?

How many children do they have? How long have they been married?

[chrisl]

I wonder if anyone here could help or know someone to contact who could help. I am posting this on behalf of a friend.

He split with his wife and recently had a court hearing re: maintance payments to his ex.

His situation is that he is a one man band limited company like most of you taking min wage salary and the rest dividends. Income could be around 90k per year although about 60% of the dividends are held back in the company so really he only receives £40k each year. The other £50k is held back in the company.

Now after the court hearing, the judge has said he has to pay a large maintance sum to his ex based on the full £90k which the company has. He is furious about this as he believes it should only be on his income he personally receives of £40k.
Whatever happends to the company funds should not come into it? After all the company could have outgoings etc which this held back money could be used for.

Now obviously this is a legal issue but does anyone have any knowledge on this or know anyone who would specialise in this area.

He is happy to appeal against the courts if he knows he has grounds to stand on but just wants to know where he actually stands.

How can the courts justify he in effect has £90k per year but he only receives pay of £40k?