Ex and limited company

[ncforadvice99]

My newly ex husband isn't paying off debts we owe (my name but still half his debt) pays the bare minimum for our child. However he is now a company director does this benefit me in anyway when we divorce? Thanks

I’m not an expert but my understanding of a limited company is that it’s set up to avoid paying out more than anything.
Limited as in limited liability and they can only every be expected to pay out what the business actually has in funds. I also think it’s considered separate to an individual in terms of assets

Worth double checking with your lawyer though

So he's probably paying himself a pathetic wage in case I ring the csa 🙄

I'm on the board of several companies. His directorship has no direct benefit for you. Why would it? I'ts nothing but a title.

He doesn't pay the minimum - I suspect he pays what he has been told to pay. What's the difference?

I wonder how differing the responses will be compared to the thread where an ex-DH has debts. Everyone there is saying that they're his debts not joint. Interesting.

gunny but they are his debts too. Why should OP pay it all. His sex has nothing to do with it.

ShumpaLumpa: because it will affect her credit rating and she doesn't want bailiffs at her door?

Some debts are joint and several liability, eg joint tenancies, council tax, so one person can be legally liable for the whole amount if they're the only one the debt can be recovered from.

So he's probably paying himself a pathetic wage in case I ring the csa

It's possible that he will pay himself a tiny salary and the rest in dividends, but I don't know whether or not the CSA take dividends into account.

If he has created or has shares in a LTD company, he may choose not to pay himself a wage, or a very small wage. The CMS will look at his tax return and decide what he can afford in childcare. However, when his company gets to year end, he can pay himself a dividend out of any profits. He can reduce his tax in this way, but the CMs should pick up on it in the following year, and adjust the childcare payments.
As far as divorce goes, if he created the company or acquired shares during your marriage while you were raising his kids, it is a marital asset.
Incidentally the debts are a marital liability and should be shared when the divorce goes through.
Or as pp has said, it may just be a job title.

LakieLady

because it will affect her credit rating and she doesn't want bailiffs at her door?

Some debts are joint and several liability, eg joint tenancies, council tax, so one person can be legally liable for the whole amount if they're the only one the debt can be recovered from.

I understand that. The point is that the ex has incurred the debts too, so should be pay half, which gunny seemed to be disputing.

he doesn't pay the minimum - I suspect he pays what he has been told to pay. What's the difference?

Potentially quite a lot if someone pays themselves a low wage to avoid paying higher tax and csa.

Wait until his year end accounts are done and make sure the csa take dividend payments into account for his income. It won't benefit you but the ltd company will protect him.

I worked and looked after our children while he set up the business

My exh was a one man lto company. Had to fight for every penny through the csa (no help at all) until he made himself redundant! Csa told me he's redundant and that's that. End of maintenance. His Ltd company was still trading so god knows who was running it. Csa were so gullible and refused to take it any further. Imo if you want to get out of paying for your children that's the easiest way. Sorry, I know I'm biased and I hope I'm wrong