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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.

What steps can we take to reach a fair agreement?

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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What would you do ... any answers please...

  • Mrs Ingledew
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14 Feb 08 #13907 by Mrs Ingledew
Topic started by Mrs Ingledew
The saga continues and the joint debt increases!

Seems the corporation tax for last year was not paid by my ex so I now have a further 10k debt to pay. Will say HMRC lovely and willing to let me a grand a month on an onoing basis - as long as they get their money they are reasonable.

This means we now have a corporation debt of £34K ... so I will be paying for 3 years!!

My stbx has suggested informally through the solicitors that I can keep the house in exchange for a lump sum to offset against his personal debts ... amount not disclosed yet.

Now I have personal debt too - more than his (not bright, not clever) and am also paying the joint loans.

The figures are ...
me 55k
him 24k

corporation tax 34k (this is a joint debt as we both own the company but he has left and wants nothing else to do with it saying it is business debt!!)

there is only about 7k in total in the house and my car is worth 2k more than his!

I have thought that if I take the 55k and the 34k and the house and keep my car - a pot of minus 78k and he gets his car and his debt - a pot of minus 22k the split is definitely in his favour...

I have both children (ages 7 and 14) and expect no money from him ever - he is currently unable to find work, he has a partner who has an income and a house (with no mortgage!)I do have an income but freelance so could be out of work at any point.

what would you do...

  • Tinny
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14 Feb 08 #13914 by Tinny
Reply from Tinny
Taylr
I might be a bit thick and missing something obvious, but that sounds awful :ohmy:. Why would you take on minus £78K to his -£22K?

Im sure someone else will have a better reply.

Tinny

  • Rosie91
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14 Feb 08 #13940 by Rosie91
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Hi, as I see it, your corporation tax is a joint business debt, personal debt incurred after the seperation belongs to the person who incurred the debt.

Why would you want to take the corporation tax debt over,
this is a business bill, based on profit, if it is a joint business it is a joint debt.

It is important to keep business debt and personal debt as separate. the business debt will be offset when the business is valued for the financial settlement. Your accountant should be able to value your business using your last 3 years final accounts, he should also be able to predict your future income potential.

Hope this helped, I'm not an expert, just a little experienced.

  • attilladahun
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14 Feb 08 #13942 by attilladahun
Reply from attilladahun
Nuts

  • Mrs Ingledew
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15 Feb 08 #13990 by Mrs Ingledew
Reply from Mrs Ingledew
Thanks thought it was a mad position too! However the value of the company will be zero going forward as it was consultancy based and I can never envisage working with him again!

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