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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.


Do you need help sorting out a fair financial settlement?

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.


working tax credits affected by divorce settlement

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19 Sep 18 #503912 by Lifeiswhatyoumakeit
Topic started by Lifeiswhatyoumakeit
Hello,
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.

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20 Sep 18 #503914 by WYSPECIAL
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If it's taxable it sounds like it will count as income.

Why is the cheque payable to you if you no longer have an interest in the company?

Who is the cheque from?

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20 Sep 18 #503926 by Lifeiswhatyoumakeit
Reply from Lifeiswhatyoumakeit
Hello,

I was the shareholder and not my husband.
The cheque is from the liquidators.

Kind Regards

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20 Sep 18 #503927 by WYSPECIAL
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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.

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20 Sep 18 #503929 by Lifeiswhatyoumakeit
Reply from Lifeiswhatyoumakeit
Thank you for your advice.

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