When ex is self employed(4 Posts)
I am writing on behalf of a friend. She has been separated from her ex a year (starting the financials and divorce process).
She has two children and he has currently been paying support for the children based on his earnings when they separated.
he has now recently reduced the amount by £200 per month (ie halfed it) saying that is now based on his monthly salary and he says it is higher than CSA would calculate.
He is self employed and works in IT and is working full time on a number of contracts.
She cannot see any details of the last years financials trading as they have not been filed yet.
She suspects that he is reducing income so that it shows he has less coming in when it comes to financial settlement so his share will perhaps be higher than it should be.
She has no access to his bank statements.
If it gets to the stage of sorting out financials then he would have to fill in a Form E which I believe would show a high level view of the financials of the company.
Has anyone else experienced this? And what did they do to ensure that the financials was sorted on a more realistic income? ie his real income? What questions should be asking or what can she do?
Also i believe she is currently getting her child support paid paid through the company (suspect she may be down as "book keeper" ) or something . Should this be changed?
She would like to get CSA involved but is terrified that if he is doing things to show less income through company then they may assess at even less than £200 per month!!
One of the things she belives he is doing is currently living off savings and paying profit from company into "company pension" ie majority of his income
Thanks in advance
If he is paying into a pension then she is entitled to half/some of that under the financial agreement
Sorry I can't help but would be interested in the outcome as I'm in a very similar position. Ex reducing maintenence because he can't afford it, yet going and buying a brand new van, I also have a strong feeling he's using creative accounting to loose some money in order to pay less maintenence and also will not fully disclose his financial position when we get to that stage of the divorce.
Namechanger2015 - Unfortunately she may not entitiled to his pension going forward according to a couple of barristers she has spoken to. So if he does not pay himself a salary and allows money to accrue in business he can "borrow" money off his parents for day to day living expenses. Pension he is building up post separation can be argued by a good barrister not to be part of pot.
I suppose what She wants to know is how much of a detailed summary of exes business can she ask for. ie end of year financial report may state Office equipment £1200 but is she allowed to ask for detail (with receipts) to show that that is made up of a PS4 and a laptop and TV all of which have been given on kids birthdays and Xmas.
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