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What are we each entitled to in our divorce settlement?

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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.

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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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Consent order stalemate

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20 Mar 21 #516148 by Lzjz
Topic started by Lzjz
Good morning

I left my ex husband two years ago after a 19 year very controlling and abusive relationship. He divorced me last year but did not sort out the finances at the time.

He has now left the country and quit his job and pays nothing towards our children, life insurance or the half of the mortgage that he is responsible for. Previously he was earning between £350 and £450 per day. I earn £2000 per month.

I have been trying to get a mortgage on the house in my own name, my ex has been pressuring me to buy him out since May 2020. I finally got approved for a mortgage in November 2020 and the offer is about to run out. I am still trying to get my ex to agree to the terms of a Consent Order but he keeps moving the goal posts.

He has a Limited Company that he used to contract through. In 2018 he left the UK to go and work in Kenya through his limited company, only telling myself and the children 40 minutes before he left. He tasked me with setting up the business bank account on his behalf which I did. He lost his log in details to the bank account, so always asked me to transfer the money which I have all the evidence of. 3 years on and he is not working and he owes corporation tax, I have resigned as a director and was never a shareholder and never drew any money from the company as a dividend, the only money I was given was out of his dividends for maintenance and half of the mortgage (before he resigned).

The Consent Order has a paragraph that says he indemnifies me from the company however, he is refusing to sign because of this. My mortgage offer is about to expire and I am desperate not to lose it as it was very hard to get.

Does anyone know whether it would be wise to delete this paragraph? Surely if I was never a shareholder, and this is a Clean Break order, and no more claims can be made, he cannot come back to me at a later date and make me pay anything for his company?

I appreciate any advice

Thanks

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25 Mar 21 #516219 by wikivorce team
Reply from wikivorce team
You should really take some formal legal advice.

But on face value the impact of removing the indemnity clause from the Consent Order is that it leaves you potentially liable in some way as a former director.

In practice it may be that you have sufficient protection from personal liability from the companies debts/creditors based on it being a Limited company.

So to go ahead with the CO without that clause you need to satisfy yourself that you are not personally liable - and that is a question of company law which we don't specialise in.

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26 Mar 21 #516242 by Lzjz
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Thank you for your reply. Please can I ask one more question...

My ex is also now saying that he needs to change the D81 form to increase his liabilities figure (which is already £44k as he ran up so much personal debt) .

He wants to add the accountancy cost of his accounts, tax return and dissolving his limited company as a liability on the D81 form after he has a quote for how much it will cost him.

Surely the D81 form should show liabilities as they are now, not in the future? (As we could both add numerous different expected liabilities, for example I need a new car, as mine is not working!) Secondly should limited company costs be added, given that they are company expenses not personal?

thanks.

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26 Mar 21 - 26 Mar 21 #516250 by wikivorce team
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In most cases small business finances would not necessarily need to be included in D81.

Its not clear that all those costs mentioned are his personal liability. Some sound like company liabilities (e.g. paying for the accounts).

You should take a view on whether you want to fight this point at the risk of delaying the Consent Order.

If you are content with the deal that you are getting in the Consent Order then that is the most important thing, and the terms of the deal won't change by increasing his liability on the D81.

What will change is that it could slightly affect the judges view of the fairness of the deal and make it somewhat less likely that he rejects the order if it seems unfair to you.

But you should not rely on the judge's view of fairness, you should get your own legal advice ahead of the Consent Order submission to satisfy yourself on the fairness or not of the proposed CO .
Last edit: 26 Mar 21 by wikivorce team.

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26 Mar 21 #516259 by Lzjz
Reply from Lzjz
Thank you very much for your help.

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