Financial Order?? Why??

[MoneyWorries1]

Been separated a long time - 5 years, been living separately.
We had no joint assets - a family car which has since been sold and money divided (was a pittance as old banger). Just the household belongings really. We didn't own our marital home and had no savings.
Messy separation and post-separation abuse (him to me)
I have not been perfect either, emotions have run high and we've had some big fallouts over the years.
I try to keep it as amicable as possible for our children's sake.

So recently when collecting our child, STBexH commented that he had been hit with a big tax bill. He recently started a Limited company.

Within days of him saying that, it transpires he has applied for divorce and also a financial order.

He's previously contested about giving me maintenance, insisting he has our child 50% so doesn't need to... although in school holidays etc, he certainly doesn't/hasn't.

I do not have any money. I very much live hand to mouth, no savings, dread the car needing repairs. Rely on UC and my wage to get by.

My concern is that he's going to somehow try and sting me for half of this tax bill?

I've no idea what a Financial Order involves, but when I googled it, it mentions splitting debt.

He previously commented how the Child Maintenance service wouldn't get anything from him as he pays himself the minimum amount from his business. So i suspect he will imply he can't afford to give me the measely amount he gives me for our child.

I'm anxious that this will again bring more stress, or financial worry, for me.

Advice please?
Why would someone apply for a F.O if there's no property/savings to speak of?

At the very least you should have a financial order precisely to stop the possibility of future claims.

Is the tax bill a bill related to the Ltd company ( eg corporation tax or vat? ) if so that’s normally the company’s liability not a personal debt. is it paye/nic or personal self assessment?

it should be very easy, as you’ve been separated 5 years to have a strong argument that this should not be treated as matrimonial liability. You’ve not benefitted from the business in anyway

in a settlement you could claim a share of the Ltd company as an asset to be included in a settlement

He’s possibly worried that if his business is successful (it may be already?) you will be able to make a claim that it is an asset of the marriage to be shared further down the line.

Thanks.

It's for corp tax, I believe.

I haven't benefited from anything. Just been left with a shed load of issues to unpack in therapy...!

Marriage is primarily a financial contract. Getting divorced without the financial order is reckless. Even if all it says is that you each take your personal belongings and the cash in your pockets, you need one.

It's so important to get it done, so you can draw a final line under it all

Just look at the whole saga of Dale Vinces first wife reopening their divorce.

https://fdc-law.co.uk/blog/wyatt-and-vance-a-cautionary-tale-for-divorcing-couples

Ditto the lottery winner whose long separated wife walked in and too a sizeable slice of his winnings as they were not yet divorced.

Thank you.

I'm just concerned if this is something I have to pay for too.

It should've been a straight forward divorce..basic, no solicitors needed as there was nothing to dispute over.

From what I've seen, it seems the financial order is either £62 or £321 depending if I contest and want the court to decide?
But I literally begrudge paying anything and I don't have it in my budget to pay out for this currently

It's a pay small to save big thing, even if the small is not that small.
Is there any way you could borrow the money, to make it happen?
You deserve to have peace of mind

Corporation tax is paid by…….. corporations. No idea why your ex thinks that has anything to do with your personal finances.

He doesn't, necessarily.

I just panicked that the reason he'd suddenly applied for divorce, was because he had a huge bill to pay. I was worried that he was trying to halve his debt and offload some as my responsibility.
But it seems that is not something that would happen, so that's a relief.

I presume it means he's got to declare his bank balance though..?? Could he lie??

I have no doubt he will try to hide assets to try and claim he is too poor to pay child maintenance payments, as he's been very difficult over them for a while now.

Hiding assets is irrelevant for cms. That is income based only

you can also get copies of his company’s financial statements

what type of business is it / ie just him and he’s set up a Ltd company to invoice his services ( inside or outside IR35) or a Ltd company that actually sells tangible goods, employs people and has fixed assets etc?

you really do need the consent order.

How long had you been married?

You are absolutely right to be concerned. People assume that they don't need a financial order if there are no assets. This is absolutely wrong. Without a financial order, you remain financially linked for ever. You could win the lottery and they could make a claim towards it.

The main factor in deciding how assets and debts should be shared is needs. If by taking on the debt, it would put you in a situation you can't support yourself and your children, the judge could rule in your favour.

Either way, you absolutely need to go through the process for peace of mind in the future.

Without a divorce you mean
the financial order is a necessary part of the divorce
you can’t get a divorce without a financial order

the financial order is a necessary part of the divorce.you can’t get a divorce without a financial order
Please don't share such erroneous information. It's dangerous! You can absolutely get divorced without a financial order.

What I don't understand is why he's applied for one though. As there is no marital debt/savings or assets.

I can only assume he's taken advice from one of his misogynistic friends and decided he's making sure his business is protected.

A financial order as many people have now told you is a very much recommended move in a divorce, it ensures it’s final. I am unsure why you keep repeating it. It means there is no ties after the divorce.

Because I was confused as to WHY when, as far as I'm aware there is nothing financial at stake.
The fact a PP has said that a F.O is NOT a necessary part of a divorce, I was even more confused as to why he's applied for one when he insinuates he's not got any money himself... which lends me to think his business is doing well and he's making sure I don't profit from that..that is the only viable assumption. Because it seems applying for the F.O is additional cost, so why would you bother unless you have something worth hiding.
Which opens a whole new can of worms.

15 years

You need a financial order, otherwise either of you can come back at any stage and expect 50% of what that person has accrued since divorce. My friend got divorced, split everything, no financial order .... years later he came back for some of thr equity in her house and he got it.

@5barks thst is totally not legally correct

I had no idea.
Especially having never been through the divorce process before!

That is shocking that people can do that, I assumed the divorce finalising was it, job done and you're finished.

Well...all I can hope is that once we're done and dusted, I finally win the Euro millions and he won't get a penny...😂

If you gave pension he could claim decades down the line. If you owned a house. If you remarried. Etc he could claim on anything decades down the line ( as could you against him)

there’s no reason not to do one, plenty of reason why you should

So it doesn't mean that he will automatically be entitled to what's in my pension so far? It's only tiny, as I was a SAHM for years and only started work again when our youngest was 6.

My worry is thats HE'S going to try and screw me over, my tiny pension is literally the only thing I have towards my future.

Because he knows she's entitled to half the business .... if he expects his business is growing he will want it out of the way