Reply to: Divorce / Spousal Maintenance

[Gibbon]

Hi Jerry,

I realise this is late but I'm in a similar position and was interested to know how it worked out for you. Any advice would be very gratefully recieved.

Thanks.

Ok I'll try to help a little.

I had no problems with the CSA, I was honest in answering their questions but didn't volunteer any extra. When they asked for proof of earnings I just gave them the last directors statement which contained the last two years records and they went from there, no poking around in my books or any of that malarky.

That was over 14 years ago and now it's over, and I can hold my head up high that I supported my kids throughout. Secret is not to get bitter about what exactly gets spent on who, just box it off, as far as you're concerned you're paying for the kids fullstop. Another thing, get a clean break no matter what you may have to give up, think long term and keep it business like.

Oh another thing, don't do the DD thing, send a cheque or bank transfer in exes account, they will argue you can't but I told them I get paid ad hoc and that sometimes the money may not be there.

Good Luck

[cojak]

Hi Jerry,

I realise this is late but I'm in a similar position and was interested to know how it worked out for you. Any advice would be very gratefully recieved.

Thanks.

I doubt if you'll get a reply, Jerry last logged in on 9/01/12.

Not a regular poster is our Jerry...

[furneach]

Hi Jerry,

I realise this is late but I'm in a similar position and was interested to know how it worked out for you. Any advice would be very gratefully recieved.

Thanks.

[prozak]

7,072 or 43,072 if the PWC requests dividends to be taken into account.

Good. That is f*** all. 20% (£717) for 2 kids is nothing. Seems most PWC's would be better off accepting the generosity of the NRP here if they are a contractor.

Though if an NRP has assets in excess of 65k (excluding prime residence) then the PWC can request a variation and they can (potentially) translate these assets into an additional assessment through the variation.

bad. Though at 8% not such a big deal... unless you've got shed loads of cash sitting in LTD company and the CSA decide to use that as an asset. if not. again the PWC would be better off being nice to the NRP contractor.

[ASB]

Yes of course they include dividends.

I think the question we all have is do they see through the company structure and view all company revenue as your income.

So, lets say my companies earns 120k revenue. But the company only pays me 7072 salary and 36,000 dividends each year. ....

What is my income according to the CSA?

7,072 or 43,072 if the PWC requests dividends to be taken into account.

Though if an NRP has assets in excess of 65k (excluding prime residence) then the PWC can request a variation and they can (potentially) translate these assets into an additional assessment through the variation.

[ASB]

Has anyone got any advice for dealing with the CSA when their are arrears involved? According to them I owe nearly £4,000. This is due to me paying voluntary contributions to my ex of the same amount over the last twelve months to pay for the Mortgage. However these contributions aren't classed as child maintenance contributions unless your ex tells the CSA they were for the kids. Which of course being very bitter she's said they were general maintenance payments.

The nice people at the CSA have therefore said that I need to pay them asap. They are threatening an attachment of earnings and going to court etc, to resolve if I don't.

My company is less than 2 years old.

BTW the CSA will take dividends into account and also directors loans as well. I have made the mistake of giving them my company accounts and they included everything as income.

Any advice gratefully appreciated.

The CSA should NOT be able to go back beyond the point at which the PWC notified them of the claim and they got in contact with you. This may offer some respite.

You might find this link useful. Extensive Information on Child Support Laws at Child Support Laws (UK)

[prozak]

BTW the CSA will take dividends into account and also directors loans as well. I have made the mistake of giving them my company accounts and they included everything as income.

Any advice gratefully appreciated.

Yes of course they include dividends.

I think the question we all have is do they see through the company structure and view all company revenue as your income.

So, lets say my companies earns 120k revenue. But the company only pays me 7072 salary and 36,000 dividends each year. ....

What is my income according to the CSA?

[Timbo999]

Has anyone got any advice for dealing with the CSA when their are arrears involved? According to them I owe nearly £4,000. This is due to me paying voluntary contributions to my ex of the same amount over the last twelve months to pay for the Mortgage. However these contributions aren't classed as child maintenance contributions unless your ex tells the CSA they were for the kids. Which of course being very bitter she's said they were general maintenance payments.

The nice people at the CSA have therefore said that I need to pay them asap. They are threatening an attachment of earnings and going to court etc, to resolve if I don't.

My company is less than 2 years old.

BTW the CSA will take dividends into account and also directors loans as well. I have made the mistake of giving them my company accounts and they included everything as income.

Any advice gratefully appreciated.

[h8mmer]

WHS

The assessment would need to be made on your personal income which is a combination of divvies/wages/investments etc. Your Ltd company is feck all to do with the wife.

Nope, you're thinking too short sighted...it all depends on how far she wants to go in trying to get you.

The CSA seem to be pretty unsure on making decisions when it comes to LTD's so they either can kick it upto a tribunal themselves or refuse a variation started by the PWC BUT then tell the PWC they have a right to appeal to a tribunal.

A tribunal may not have a right to go into a company bank account to take money but they sure as hell can say your warchest is undeclared earnings (there is a 2 year rule on whether or not a co is deemed a startup) and put you personally in arrears for child maintenance.
And if you think you can't be made to pay then have a look for some of the orders the court can levy against an NRP that owes arrears.

If an ex has an acrimonious relationship with the NRP that she's unwilling to enter into a personal agreement for a fair amount (and just wants her pound of flesh) then if she's offered another consequence free way to attack you what do you think she's going to do?? And remember this is all at zero cost to her (finiancially and effort wise), you are the one that has to produce all your company & personal bank statements, all documentation relating to what your company does and why you you should be exempt from having to pay her more.
All she has to do is throw some unproven muck your way and you could be in deep doo-doo...

I know cos I've been there & its not a nice place to be.

[MarillionFan]

CSA only use actual income to determine money to be paid. ie (Sal & Divs taken over the course of a year). They cannot touch company money. The calculator on the CSA site is normally on the money. Use it and be honest and then you'll get a good idea. If you want to actually avoid paying her anything then the CSA cannot actually force your company to show ho much they pay you.

WHS

The assessment would need to be made on your personal income which is a combination of divvies/wages/investments etc. Your Ltd company is feck all to do with the wife.

As the OP has said, he has made the decision on what he pays, not the CSA. He has paid 25% of his 'company' income, not personal. These are two different things.

Scale it back to a reasonable amount. To make a point above about letting them know who is in charge, if she kicks off tell the ex-wife you've lost your contract and pay no maintenance for a month or two because 'as she knows it's only when you work'. In addition if you're worried that the jobless, feckless b/f is sponging off you as well, pay for the kids clothes/etc yourself and remove it from the overall amount. And as a last resort there's always a hitman.

[Underscore Pt2]

CSA only use actual income to determine money to be paid. ie (Sal & Divs taken over the course of a year). They cannot touch company money. The calculator on the CSA site is normally on the money. Use it and be honest and then you'll get a good idea. If you want to actually avoid paying her anything then the CSA cannot actually force your company to show ho much they pay you.

[prozak]

Slightly off topic but worth a read - targeted to the US market and I don't agree with it all but still some very valid points.... And note, prenups aren't binding in this Country and if they were, the next Labour Government could simply change that retrospectively...

Don’t Marry

great link.

A bit excessive here and there but amusing all the same.

[tractor]

..

.
...

Also, I was reading the posts about how to get revenge on your ex. In my case I didn't bother even trying, I concentrated on my kids and getting on with my life. The upshot is I'm remarried, have a great relationship with my kids and am happy as a pig in muck.
The only downside is the baggage I have with a vindictive mentally ill ex who keeps coming after me but I put that down to the bitterness she must feel when she looks at my stable happy life. The way my life is now is what she thought she would be getting when she thought the grass was greener, ho hum - life is good...

This. Exactly.

I went to one of the kids' friends' weddings this year. Unfortunately ex was there, boyfriendless now, I think she's run out of candidates and this is a BIG town.

She started talking to me as if there was 'unfinished' business lol. I looked at her, shook my head and walked off.

[ChrisPackit]

I must admit I've never been in this situation and hope I never am, but I am a realist, I'm married with 2 kids and I've seen the stats about 2 out of 3 marriages ending in divorce.

I must be so naive, but my thoughts were as long as the money is in your Ltd, and not part of your income / divs then they couldn't be counted?

I have a friend in a similar situation, who managed to bill a client for a minimal weekly amount of 4 or 500 per week, and then when the dust had settled, he had a "project completion" bonus in effect, witholding the majority of the monies till the end, I don't know if this would work in some scenarios...

[eek]

Could you not just make her a 25% share holder and pay her some of the money that way.

It would of course screw up all her benefit claims once the DHSS are informed but I don't think she would notice until it was too late.