Earlier this year my divorce settlement ruling was
That I kept the family home and my husband received the money from a joint business we had together, albeit I was the shareholder. It was agreed that the company would be liquidated at the earliest opportunity which is now this week. I have received a cheque today which I have been asked to bank and pay diectly to my husband who will then pay me back the amount of tax payable.
Since separation my household income dropped significantly and As I work part time I applied for working tax credits earlier this year which I now receive.
I am concerned that this payment from the liquidators will be counted as income although I don’t actually receive any of it and I’m worried about what I should do.
Any advice would be appreciated.
Thanks for listening.
But if you had transferred your interest to him then you no longer would be?
What time limits did the Court set for you transferring your interest to your ex?
Might be worth checking with tax credit helpline but if the money is from the sale of an asset and not subject to income tax then it won't be income so won't affect your tax credits. If it is a dividend payment or pay that you were owed then it will.