Can he do this? School fees.

[WiggleyPuff]

Reposting from legal matters, this is long sorry!

Divorcing a controlling man. We have three kids in private school and 600k of equity in an 800k house. He works in his family business.

There are two trusts:

trust 1- has always paid the kids school fees. This stopped in 2020 (just before we separated). All the income is now diverted to his father “for tax reasons”.
trust 2- owns shares in his family company. Pays his income (77k last year, historically ~96k)
he’s submitted letters to court from his accountant saying that his income will reduce next year. We’ve just done FDA. Fdr in October.

he pays nothing towards kids expenses because ‘he’s paying the school fees’. So I fund everything, uniform, clothes trips etc.

He emailed me in April to say he’d given notice to school in case we needed to take them out but that it wouldn’t be necessary if I agreed to his offer (200k equity - not enough for me to buy anywhere) I have a very low income.

I said we likely needed to take them out and we agreed I would look at other schools.

ive now found my daughter a place at an outstanding state grammar and the younger two places at an outstanding primary. The kids are a little disappointed but okay.

email went to solicitor - answer comes back: no you can’t move them, I’m paying from my income and I don’t want them to move.

On 77k a year after paying school fees and child maintenance he would have £500 a month left over to house himself and pay essentials - clearly it’s not possible. So I guess he’s planning to argue to use house equity to pay school fees or he will hugely increase his income after the consent order. Shafting me basically.

What are my options? I feel totally blind sided. Can he argue he can pay when he’s submitting stuff saying next year his income will drastically reduce and the figures don’t actually add up?!

What are the assets? Private school isn’t a need- better that both parties are housed.

The only real assets are:

-600k of equity in an 800k house
-~£1m of his business shares in a trust (trust 2) that he is the trustee and beneficiary of.

With his income and some equity from the FMH he will be able to house himself. If he has to pay school fees he will be unable to and the corresponding change in my equity will mean I am also unable to.

You need specialist advice. A lot depends on whether the “Trust” that pays him is a marital asset. As you have alluded his position doesn’t add up and could give your lawyers scope to query his financial declarations. In the end you might not get very far other than to shut him up.

Assuming that it’s isn’t an asset and that only marital asset you have is the house. Your goal will be to secure as much of that pot as possible. It’s a big pot but a lot depends on house prices in your area. How much of mortgage could you raise and how much would a 3 bed house cost in the catchment area of the new schools?

Focus on getting a sufficient share of equity to but that home. Not what he would do with his share and his dodgy schemes. Get what you need to live the life you want for you and your children.

From your perspective I would carry on with your decision and call his bluff. Clearly your don’t need him to pay school fees. Instead you need child support. Put in a claim immediately. Tell him if he or anyone else wants to pay school fees it won’t be in lieu of child support. Establish a clear correspondence trail that demonstrates you need child support not school fees paid for.

Put in the claim and he will change his tune. Neither you or his children need school fees paid.

What was Trust 1 set up for?

I think you need some proper legal advice (as said on the other thread) and I think go for removing them from private school - I cannot see how using the equity for the fees would be signed off.

Going to school is a right - going to private school is a privilege. Being housed is a right

Trust 1 was set up to pay private school fees. It paid his, his brothers and cousins etc. He removed our kids as beneficiaries in 2020 just before we separated.

I’m meeting my solicitor on Monday morning, is there any other specialist advice I could get?

It sounds likely to me that in reality school fees still will be paid from Trust 1. But payments will technically be from his father.

Why else would he remove his own children as beneficiaries but still insist they stay in private education?

This isn't my area of expertise (far from it) but it sounds as though he's trying to shaft you. No way is he actually proposing to pay fees from a £77k income or the home equity. He just wants it to look as though he is to deprive you of equity & proper child support. Which in turn sees his children go without basics while attending an expensive school.

Clearly the fees will be paid from trust 1. I suspect he will be a sorry guy if he takes this to court!!

do not settle for 200k!!! It simply wouldn’t be fair

“He removed [your] kids as beneficiaries “?? Who are the trustees and have you checked that this removal was in line with the trust rules?

(Very quick google suggests that a court order is required to remove a beneficiary. Is it a discretionary trust and he is a trustee and is using his discretion not to make payments to them? Big difference. Potentially really complex and potentially very clear evidence of bad faith against his own kids which a judge will take a dim view of)

It’s a discretionary trust - he can definitely remove them as beneficiaries. I think it is likely evidence of bad faith - he’s declared it to be for “tax purposes” that he removed them. We’ve asked for evidence of that advice.

It doesn’t tally with the income evidence he’s submitted- he’s given letters from his accountant saying that next year his income will be 52k. It would literally be impossible to pay the fees on that salary! But it’s a total head fuck and I don’t know what to do!

Neither of you can afford private education and you are living above your means. You need to sell the house and split the equity.

This thread 8 months old now.