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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

I think DH is hiding finances from me

120 replies

Shrewdone · 01/08/2012 02:48

i am married(10 yrs) and we have 3 kids (6,9,15) the oldest is from past relationship but real dad has never bothered.we used to have a joint bank account until our property business went bust in 2008 and my DH declared himself bankrupt.As I was a joint director of our company ( but DH made all financial deals and decisions) the huge debts that we had were also mine! DH begged me to go bankrupt but I refused. He constantly tried brow beating me into it saying that I am just prolonging the inevitable as they ( the banks/creditors) will come for me anyway and bankrupt me . I told him I would not go bankrupt and if they do then so be it( not a lot I could do). During his bankruptcy he could only have a basic bank account, and I had my own account. DH went back to work as an IT Consultant ( self employed). We lost our lovely home ( it was in his name only and he signed it as security against development finance) so this was repossessed by one of the creditors. He did this behind my back and I only found out when the s..t hit the fan ! We basically lost everything but are very lucky that he is able to earn a very high income as an IT consultant, which is what he was doing prior to setting up the property company.He has been discharged from bankruptcy ( approx 3 yrs) and has a limited company as an IT consultant. We still live in rented as cant get mortgage due to credit history.
My big problem is that he still has his own separate bank accounts both personal business and various savings accounts, which he opened a number of months ago. I honestly do not know how much he earns every month. He tells me it is around £120k per annum gross but I had a bad feeling he isn't being honest so I had a search through his desk and any paperwork and found some bank statements. From what I saw, basically you can double that figure he tells me ! I told him and he laughed at me and denied he earns more. I have insisted countless times that he gives me complete access at all times to the bank accounts but he just makes excuses. Once after a huge row about it he produced a spread sheet that he had made of In goings and outgoings and expected me to accept that !
He pays me an allowance each month which he puts through as a salary saying I work for his company. Over recent months I have had to ask for him to pay it into my account ( very demeaning ) ans he says he hasn't got any money as he has had to pay this and that and he can only give me so much now and more later in the month. This month I have had the same but I told him no and that I expect it paid in one payment as he had originally agreed. Our youngest are in private school so he said I can have my allowance/housekeeping but he will have to use money he put aside for school fees. I decided that his attempt at emotional blackmail will not work so I said OK.
I asked him why when he earns more than most people he is always pleading poverty ? He tried to blame me! Saying most of HIS money goes to me . I told him that this set up is no good and we should have joint accounts and that we are married and who ever earns it is OUR money and I shouldn't be made to go ask him and go through this all the time. I insisted that evening we sit down and he shows me all off his accounts online and pay statements so I can see what income there is and exactly where the money is going ( I have been through this conversation loads of times before). DH response was ' I haven't got time to do that so no '.
I am at my wits end with it because I can only think he has something to hide. and why does he not want me to see exactly why he earns ? The whole thing stinks and I don't know what to do to be honest.Also we rent a huge house in the country which costs loads to upkeep and is 2k per month rent. I hate living here as he works abroad all week and I get spooked as it is quite isolated. Me and the kids all want to,live in a regular size 4bed house in or near town but he refuses to live where I want and will not budge on it.

OP posts:
roseum · 01/08/2012 12:25

Try checking up on the company via Companies House (assuming you know/ can find paperwork with the company name on). He has to file company accounts. I think you can get basic information for free, or get a bit more by paying a fee.

CinnabarRed · 01/08/2012 12:36

If you PM me the name of the company I can do a complete Companies House record search.

As others have said, he's committing tax evasion by declaring your allowance as a salary. It's illegal. I'd threaten to inform HMRC.

lovebunny · 01/08/2012 13:14

get a financial advisor and solicitor who don't know your husband. make your plans for the security of yourself and your children (that might be renting in an area you want to live in). then leave. you might want to keep your new address to yourself until you see how the land lies after the split.
don't push your husband at this stage. some men take extreme action when their financial situations turn sour and they can no longer maintain the myth of alpha male/happy family.

jicky · 01/08/2012 13:45

If his gross is £120k and you have two kids at private school (say £30k) plus an expensive rental (£24k) then that leaves about £20k after tax for everything else.

Now I know lots of people will say this is loads of money but it does seem quite tight for the life style you seem to be living.

Still doesn't mean you shouldn't have a full understanding of the finances, but maybe more because you could be getting in to debt again than because he is hiding money from you.

Shrewdone · 01/08/2012 14:44

thanks. Hate the secrecy !

OP posts:
Shrewdone · 01/08/2012 15:00

I know that him making me an employee of his company and paying me a salary is not the correct way to do things by the book - he is doing it so he pays less tax. I have told him I don't want it as ' pay' but I just want him to transfer my monthly 'allowance' as a straight payment from his account to mine.The reason I want this is because if I do leave him I will need to claim Working tax credits to help support myself and obviously with the way it is now I would not qualify. I dont tell him that of course ! His response is that if he doesnt give me my money as a salary then he will have to cut it by half as he will have to pay more tax !! Outrageous or what !

OP posts:
TheQueenOfDiamonds · 01/08/2012 15:10

Sorry but he earns 120k (possibly more) a year and he's saying he has no money? Even I'm not that bad with money. YANBU I would not expect to have to beg and plead for housekeeping money if my OH earned that.

FFS we've been on benefits before when OH was fucked over backwards by his boss made redundant and I never had to beg or plead then!

CinnabarRed · 01/08/2012 15:11

Outrageous. And illegal.

Shrewdone · 01/08/2012 15:19

lololizzy - I hate being reliant on another too. But he works away and someone has to be around for the kids. I feel like I am a single parent to be honest because when he is home he doesn't want to bother with kids or shouts at them to get out if they come into a room he is sitting in etc !
I was a single mum before I met him and always worked to support me and my son. I had my own house and car etc and infact earned more than he did and had a better house than he did when we met. It is the classic case here of the woman behind the scenes pushing her DH forward with job and supporting him. Last year I studied and got a diploma and I have set up my own business as I am trying to build myself a future incase I will be without him. Unfortunately it is early days with my business so not bringing in an income yet.

OP posts:
MummytoKatie · 01/08/2012 15:24

If you two split up then he will have to pay you maintenance. I suspect the allowance will stop at this point anyway so you'll be able to claim tax credits etc.

Shrewdone · 01/08/2012 15:27

Jeezypeeps - Basically no one has come after me to bankcrupt me ! I am not hiding and can easily be found, address and all on a google search. I think they settled on my DH as they were aware he ran things anyway and realised that no point bankcrupting me as I have no assets or income of my own - it would just cost them money for nothing. I have not paid these debts as there is no way on earth I will ever be able to unless I had a substantial lottery win! I just have a nasty credit record now.

OP posts:
Toughasoldboots · 01/08/2012 15:33

This reply has been deleted

Message withdrawn at poster's request.

Shrewdone · 01/08/2012 15:36

as far as I am aware I am an employee.

OP posts:
Shrewdone · 01/08/2012 15:38

he is a self employed IT consultant and he says that to get decent contracts he has to be a Limited Company, so this is why he now has this Limited Company. The only income going into it is basically his pay ( or money he invoices his clients for ). As far as I know he is the only director of this company.

OP posts:
CinnabarRed · 01/08/2012 15:38

OP, not trying to rub salt into your wounds, but I'm slightly shocked that you're allowing so much to be done in your name without understanding exactly what's going on. For example, it would have been possible to ringfence your credit history from his so that his financial position didn't ruin your credit record.

Lesson for the future?

CinnabarRed · 01/08/2012 15:40

I think companies have to have at least 2 - a director and a company secretary.

Seriously, PM me the company name and I can find all of this out for you in about 5 minutes.

Toughasoldboots · 01/08/2012 15:42

This reply has been deleted

Message withdrawn at poster's request.

Alibabaandthe40nappies · 01/08/2012 15:44

If you are an employee, then that shows that his 'oh I will need to pay more tax' reasoning is bullshit.

The most tax-efficient set up is to have you both with a 50/50 share split and him pay you dividends.

I would look into the company details, because you might well be a shareholder, and he is paying your dividends into his own account.

ItsAllGoingToBeFine · 01/08/2012 15:44

OP, if he is a limited company he needs to publish his accounts.

For a few quid you could get copies of his company accounts. Maybe worth a look?

CinnabarRed · 01/08/2012 15:45

If she's treated as an employee then her wages benefit from her personal allowance, lower rate and basic rate tax bands. And are tax deductible for the company.

But that's only true if she's actually working for the company AND is doing work commensurate with the salary she's being paid.

Otherwise it's fraud.

Shrewdone · 01/08/2012 15:46

thanks but my only crime was to trust him. I really did trust him when he wanted to leave consulting to set up the property business as up until then he had given me no reason not to have complete faith in him financially. We had joint bank accounts back then too. It is since his bankcrutcy that he has gone like he is - separate accounts, I honestly do not know exactly how much he earns - he actually burns his paperwork ! I only have his word on things.
Thanx for offer of checking companies records but I will be doing this myself, just to see who is listed as it was my understanding too that there need to be 2! That is why he needed me as one for the property business.

OP posts:
CinnabarRed · 01/08/2012 15:46

Alibabbaa - it's only most efficient above a certain level, and depends on how much the company's profits are.

Alibabaandthe40nappies · 01/08/2012 15:47

Cinnabar - there is no longer a need for a Company Secretary, but the company does have to have 2 Directors.

Alibabaandthe40nappies · 01/08/2012 15:48

Cinnabar - true. But if his gross is around £120k then it is very much more efficient at that point to have a fairly equal split.

Alibabaandthe40nappies · 01/08/2012 15:49

Sorry I don't mean to sound so blunt - I am watching the cycling Grin