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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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Our consultant service offers expert advice and support to help you reach agreement on a fair financial settlement quickly, and for less than a quarter of the cost of using a traditional high street solicitor.


Child Benefit and Tax

  • Fed up Dad
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16 Mar 15 #458029 by Fed up Dad
Topic started by Fed up Dad
Hi,
I am absolutely disgraced.
I have submitted my self assessment tax return albeit late and had to declare the amount of child benefit my ex was in receipt of for tax year 13/14 as we were still living together and I was the higher earner.

The amount she received was £2,449 based on 3 kids and I have to pay the same amount in tax!!! I phoned HMRC up and they have confirmed that the full payment is taxable. I told them that I expected to pay tax at 40% on this amount but surely there should be a benefit in continuing to receive it. Apparently not. So whilst my income just nudged over the threshold, my ex was earning £500 per month. The whole system is an Absolute joke. It is not applied fairly to a couple where one either doesn''t work or on a low income. For those that are both high earners, they can afford to pay the tax on child benefit.

I am now stuck with a tax bill that needs paying - my ex has taken advice from her solicitor that it is my responsibility to pay. Interest is being applied now until the amount is cleared and all I can pay is £50 per month.

Sorry to rant on but this has just topped my financial position off a treat.

  • Unctuous
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16 Mar 15 #458033 by Unctuous
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The amount of CB you are entitled to is tapered above £50,000 to an entitlement of £0 at about £60,000.

If you (as husband and wife) claimed it when you were not entitled to it you have to pay it back. If the money was paid to your ex. I would love to see the logic behind making you pay it back rather than the person who received it.

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16 Mar 15 #458035 by Fed up Dad
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My total income plus the cash equivalent on my company car and healthcare for 12/13 tax year totalled £62K as I had a bonus payment that year.

HMRC are not saying we have to pay it back in the sense of an overpayment, they have just clobbered me for a tax charge which is equivalent and as we were still a married couple during that year and I am the high earner, they say it is my liability too.

I wish at the time we decided not to receive the payment at all

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