StbxH self employed and paying himself less than he should

[JaggySplinter]

Has anyone been in this situation and have advice.

StbxH is a director of his own company. He's set his salary at less than 1/3 of what he could pay himself. The company was valued by a sole joint expert, and the report states that he can sustainably pay himself the higher amount.

Can I ask for child maintenance to be calculated on the higher amount? Does he have to use the higher amount when we agree the financial split, or can he use his "fake" lower earning to ask for more equity?

Even his artificially low salary is still more than mine.

No, you can’t request that CMS calculate CM on an amount you deem he should be getting.

CM is based on real time earnings which the CMS have access to.

How do you that he takes 1/3 of what he could pay himself and why does he do it?

Unfortunately people can pretty much pay themselves what they like from their limited company.
That's how my XH conned the CMS into believing that he didn't earn enough to pay CM.
While he was driving a Porsche and his current wife could give up work because she didn't need to as he was bring home so much (but not via an actual salary)

Same question to you Liz how do you know that is what he was doing and why do you think he was doing it?

His company was valued as part of divorce proceedings, and the valuation included a section on how much income he could reasonably draw from the business without effecting day to day running, future plans and contingency funds. The accountant that valued the business stated the income he should draw.

I've financially supported him/the family for years, and it's very clear that he's stockpiled money in business accounts that he never admitted to having while we were married.

I suppose I'm a bit shocked that he can do that, which would be like me asking my boss to cut my pay by 2/3 and the asking for spousal maintenance on the grounds that he earns more.

If he's built up excess money in the business, that should reflected in an increased company valuation. Why isn't that value being accounted for in the capital split of your settlement?

Plus, if its retained profits he could distribute the lot if he wished, so I don't see why this is defeating a half decent solicitor.

Thanks. The built up profits are counted. It's just the part of Form E where you put your earnings for last year and next year, and the child benefit. He's insisting on using the lower figure, which seems unfair he will rebuild a huge stockpile within a few years while apparently not earning much or supporting his children in the way he could.

If his approach is to support his kids less than he's able, I'd focus on maximising the capital value obtained now, in order to supplement your future income.

I presume even if he used the higher figure now he could drop it down again at a later date anyway; it sounds like he would.

Maybe make some noises like you want a direct shareholding in the business rather than an offsetting value. Might focus his mind.

Wow, thanks for that. I hadn't thought of asking for it to be split that way.

@PieceOfMaria Because he was doing the same job he was doing before we'd divorced, his business had grown even more (and he was still buying himself more cars) and - more importantly - because a couple of his friends were so disgusted with him that they told me.

I believe that the other company director was helping him hide money.

He was doing it because he could, because the CMS don't have the resources to check into every dodgy person and because he's a piece of sh!t.....

He ended up completely ghosting our son....