I have my first court hearing in Aug, what am i likely to expect at this hearing ?
I have been separated for 18 months, i work overseas and i have asked my solicitor that i do not wish to have my monies earned after [url=Resources/Library/Cohabitation-and-Separation_s33_m1852.html ]separation[/url] to be part of a settlement, he says we can contest this, has anybody had success going down this road ?
Just to give a brief overview of my case. I have been married 29 years, children have all left home and wife has never worked. I worked as a consultant through my ltd company and have just finished my current contract, i have decided not to take further work until divorce finalised or an agreement that earnings are not included. The net value of the company is around 800k, house is mortgage free and around 300k, further savings of around 200k. When i left my wife i offered her the house and 250k cash, she said this was an insult, i tried to explain to her that there are personal taxes involved in turning company monies into real personal cash. We went to mediation but i was informed we are not suitable so now going to court, such a waste of money and probably will cost us both 20k. She is seeking maintenance as well, even though there is nothing wrong with her that prevents her from working. My solicitor says they may ask for a bigger slice to drop the maintenance claim but he also says there are grounds for her not to get maintenance anyway as there is plenty of cash and nothing physically stopping her from working. My pension is not worth much.
We are both 54, currently i have finished work as the contract came to an end and i decided to not work until the divorce is over, she has not worked for 32 yrs. There are other assets like cars etc, not a lot in the way of pensions though. The reason for the offer being at that level was because even though the company is worth 800k, that money is not the same as we would get if taking that out personally , ie closing the business. She would have a 10% tax bill and me a 20% if closing the business down which equates to around 140k, then costs for closing it down. When i made her the offer, the values were probably 100k less than now so it was not a bad deal in my eyes. I have continued to pay all her household bills since leaving, i also still pay her £200 a week for food and a regular £150 a month for anything else, as my solicitor said, very generous, i did try to stop the £200 a week but they said they would get a maintenance order against me and i decided it would probably cost more in fees than i actually save, so canned that idea.
Anyway, main question was, is he likely to get part of my earnings that i have had since i left her 18 months ago.
Regarding maintenance, she has demonstrated a need, and you have shown you have the ability to pay.
As far as earnings post [url=Resources/Library/Cohabitation-and-Separation_s33_m1852.html ]separation[/url] go, they are all part of the marital pot for consideration.
The start point for division of assets after a long marriage is 50:50.
A lot will depend on the costs involved in meeting needs. The strict need for each of you is a 1-2 bed property. She will need income now and in the future. Whilst she could and should seek work, you have to be realistic. If she has not worked outside the home for more than 30 years and is in her fifties, the prospects of more than a minimum wage job are limited. She could consider undertaking some training and getting qualifications perhaps?
There would appear to be sufficient assets to meet housing needs. Your argument about net valuation of business share seems not unreasonable. Is she a director? Why would her liability be £10k% and yours double that?
As to maintenance, the courts do prefer a clean break where possible. The way to achieve this may be for her to have a larger share of the cash assets that she can maybe invest to provide an income.
Thanks, my solicitor seems to think he can fight the earnings after [url=Resources/Library/Cohabitation-and-Separation_s33_m1852.html ]separation[/url] based on a capital gains ruling after [url=Resources/Library/Cohabitation-and-Separation_s33_m1852.html ]separation[/url], he wasn't really that confident though, he did say that she does not need maintenance with a healthy amount of money coming her way, it was all about need and not what she wants.
For liquidating a company there are 2 things. She is a director with 30%, for 90% of the time i have worked as a consultant, the company i have worked through have said they wanted me to go through my Limited company, to only pay 10% tax on the net value of our shareholding, we cannot have a limited company, doing the same thing within 2 years, if you want to trade through a limited company then you need to pay 20% tax, for me to pay 10% would mean i couldn't trade, she would not be in a limited company so she would be ok with 10%
Replying to someone elses post got me thinking about whether a court can stipulate that my company should be closed down, reason i ask is this.
Company worth around 800k, wife owns 30%, me 70%.
She does not want to close business as it owns a house my daughter lives in.
Wife wants only cash and also the marital home which is around 300k, mortgage free.
I have said to her she should take a property from the company as part of her deal and some cash, she says no. We have around 200k in savings but if i give her this, iam left with the business and a lot of tax liability, also she has to be seen to have 30% from the company as it will effectively buy her out.
If she is hell bent on only having cash and i do not agree to this, can the judge order that all assets are sold before the final agreement ?