A well respected, award winning social enterprise
Volunteer run - Government and charity funded
We help 50,000 people a year through divorce

01202 805020

Lines open: Monday to Friday 9am-5pm
Call for FREE expert advice & service info


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.


Company dividends and SM

  • braveheart
  • braveheart's Avatar Posted by
  • Senior Member
  • Senior Member
More
04 Feb 08 #12795 by braveheart
Topic started by braveheart
Hi,

I am self employed (own limited company). My stbx has negotiated an amount of SM that I will pay her which is considerable.

After SM (and CM which I do not have a problem paying), the only way I am going to make ends meet is through my company making a small profit.

Do I understand correctly that company dividends paid out to me in the future as sole owner are not subject to me paying her a % of these as part of SM or indeed CM? i.e. can she claim a % of my company dividends?

Also if I drop my salary by 10% due to difficult trading conditions, does my CM drop accordingly as I pay along CSA guidelines, 20% of my net salary?.

Thanks for reading. Any advice appreciated.

  • Angel557
  • Angel557's Avatar
  • Platinum Member
  • Platinum Member
More
04 Feb 08 #12798 by Angel557
Reply from Angel557
All i know regarding CM and dividends is the CSA are clamping down on SE , reason being you can pay yourelf a low wage but pay yourself large divindends, the PWC can ask for a variation on the grounds of income inconstient with lifestyle.

  • braveheart
  • braveheart's Avatar Posted by
  • Senior Member
  • Senior Member
More
04 Feb 08 #12800 by braveheart
Reply from braveheart
Angel,

You may be right. I don't intend to cut may salary by a crazy amount but a genuine 10% is just business sense.

Can my wife claim part of the company dividend?

  • Fiona
  • Fiona's Avatar
  • Platinum Member
  • Platinum Member
More
04 Feb 08 #12842 by Fiona
Reply from Fiona
The CSA wouldn't normally take director's dividends into account when assessing CM but Courts awarding SM do.

Moderators: wikivorce teamrubytuesdaydukeyhadenoughnowTetsSheziLinda SheridanForsetiMitchumWhiteRoseLostboy67WYSPECIALBubblegum11