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What are we each entitled to in our divorce settlement?

What does the law say about how to split the house, how to share pensions and other assets, and how much maintenance is payable.

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limited company and divorce

  • debbied
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03 Apr 12 #321525 by debbied
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STBX and me have been seperated 5 years.So can divorce on these grounds.Our 2 children have lived with me(12 & 8) since seperation.And there seems to be no issue with this.

the issue is the financial split.We have the matrimonial home.I had a mortgage on it prior to us meeting and it is still in my sole name.But we have been married approx 13 years insluding the 5 seperated for.One of our children is mildly disabled.

So how will the financial split work.
My circumstances are I am on benefits.had to give up a full time job(with good pension)5 years ago when we split to look after children.I get carers allowance.My outgoings are looking after the children and myself.The mortgage is paid off.I recieve £5 a week CSA as he has a limited company but pays himself minimum wage.

his cicumstances are earns 40k a year but as a limited company in his sole name.but pays himself minimum wage.Has no outgoings other than himself and very low rent(council housing).The limited company was set up after spilt but will they take this into account in the split as he has now got a good income and good pension and lots of savings but they are held in the business which is soley in his name.

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04 Apr 12 #321531 by Action
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I''m not sure about the fact that the company was set up after your split (hopefully as it was before a financial settlement you should be OK) but I am pretty sure from my own experience that it''s the company profits that get taken into account, not what your husband is paying himself. If you have had to give up work to care for your child then you have enabled your husband to work at setting up his company as he has not had the care responsibility so, to me, it only seems fair that it is taken into account. I''m no legal expert - just my common sense opinion!

  • hadenoughnow
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04 Apr 12 #321538 by hadenoughnow
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You can ask for disclosure of the company''s bank accounts as well as his personal accounts. My ltd company was set up after split and I had to produce all bank accounts and annual accounts. Have you found out if he is taking dividends on top of his low salary? If he is, this counts as income too. It will show up in the accounts.

Hadenoughnow

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04 Apr 12 #321545 by cookie2
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There are different types of company that someone can set up. Many are simply one-man/woman companies with no assets, just a shell or wrapper for a self-employed person to work under. Others have employees, payrolls, etc. These two cases would be treated very differently.

But even so, the needs of the children will come first. Whatever the outcome, they will not be made homeless, and since you''re the PWC, neither will you. This most likely means you will keep the house and unless you have the means to release some equity for him (which you most likely don''t), he won''t be able to get much, if anything..

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04 Apr 12 #321547 by Action
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As Cookie says, he can''t disguise his true income by hiding it behind his company. My Mediator said that a Company is not only viewed as an asset (probably not worth anything in that respect) but also as an ''earning vehicle''. My STBX has indeed done the paying himself dividend trick. I had to keep any eye on information through Companies House to keep one step ahead.

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04 Apr 12 #321557 by debbied
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His ltd company is a one man band.Doesn''t employ anyone.He is self employed and no one works for him.He is the only shareholder too.

I actually paid the costs for his training so he could go self employed but can''t prove that.

So anyway how will this work if he is the only employer in his ltd company.Will the whole thing be taken as an asset.Also how do I find out about dividends

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04 Apr 12 #321559 by cookie2
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It will all show up on his form E. If it does not then you should raise it on your questionnaire. His company is an earning vehicle rather than an asset.

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