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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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The four basic steps to reaching an agreement on divorce finances are: disclosure, getting advice, negotiating and implementing a Consent Order.

What is a Consent Order and why do we need one?

A Consent Order is a legally binding document that finalises a divorcing couple's agreement on property, pensions and other assets.


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Director's income assessment?????

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15 Sep 07 #3420 by mushroom
Topic started by mushroom
My ex 2 be is a director of a Ltd Co. He is always going to pay himself in a tax efficient manner (along with his new partner who is his PA). He is determined that he only intends to pay the 15% of his carefully adjusted net wage in maintenance for our son. I think this is grossly unfair considering that he will no doubt keep his wage under the higher rate tax threshold and take money from the business in other ways - he is the only director??????????

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15 Sep 07 #3422 by LittleMrMike
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Yes, that's the trouble isn't it ? Ordinary mortals like you and me who get taxed through PAYE don't have the chance to do any creative accounting.

I think I would try the CSA helpline for starters. They must have encountered this situation before.

Mike

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15 Sep 07 #3423 by mushroom
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Thanks. I did give them a call and it didn't sound too promising! The other aspect to consider is that I don't want to be scrutinising his accounts for the next 15yrs or so, I would much rather have an index linked more realistic contribution and leave it at that!!

Mushroom

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15 Sep 07 #3424 by Fiona
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15 Sep 07 #3425 by mushroom
Reply from mushroom
Thanks for that. I really don't fancy logging his every move/cash job and I'm sure he doesn't want that either. My solicitor has sent his a proposal so fingers crossed!!!!!

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21 Sep 07 #3727 by makyntash
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Hi, I'm in the same position exactly! My ex and I set up a business 7 years ago. After I left he went LTD and his new wife is his "book keeper" getting paid more a month for 3 hours a week than I get a month full time. His parents were "gifted" shares for tax reasons (?) and he pays himself 5 grand in salary and 14 grand in dividends. We had a maintenance order for £500 per month which he asked to be varied down in 2002 when she got pregnant and because I couldnt afford the legal fee i agreed to £400

However he went behind my back and took the RPI out so it has never gone up with inflation and I only found this out last week.

He applied for it to go to the CSA so they could assess and he would only have to pay me £5 per week for 2 kids because they only take his salary into account not dividends and it would take 6 months to a year to sort!

As it happens my court order is dated before the March 03 cut off so the CSA had no jurisdiction so he went to the courts.

We went yesterday each racking up 7 grand in fees. He claimed he couldnt afford the maintenance anymore due to his business failing and him being to depressed to work.

My barister accused him or "creative accounting" because he kept his wages under the 40% tax bracket and the judge agreed and threw his case out and awarded me costs thank god.

However he hadnt produced P&L or management accounts so he could still go back and try again. Its a nightmare, however a good barrister with a sound financial background will expose him for what he is and you should be ok. But not if you get involved with the CSA because they are not equipped to deal with it.

Try and get a court order if you can. It provides SOME protection although not much.

Good luck!

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21 Sep 07 #3729 by Fiona
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The problem is currently a court can't impose an order for child maintenance, it has to be agreed in a Consent Order.

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