Can the CMA make my self-employed ExH pay according to what he earns and not what he draws as a salary/dividends?

[Namechanger2015]

I've just applied for CMA, and have been told that my self employed ExH (he works under a limited company) will only have to pay according to how much salary and dividends he draws from his company and not according to his actual income.

He invoices approx 70-80k per annum. This money goes straight into his business account. He then withdraws 9k salary and approx 20-30k as dividends.

The CMS calculator suggests I am entitled to around £950/month if his salary is 70k, but just £400/month if his salary plus dividends is 30k/month.

This is obviously a massive drop, but the lady from CMA said there is nothing they can do. It seems like a ludicrous loophole to me?

I am going through a divorce and Form E is due to be exchanged tomorrow. CMA will take another 4-5weeks to process before it comes into action.

Can I do anything about forcing payment based on his full income?

I am actually devastated at this potential shortfall in income, ExH does not provide for DC at all, sees them once every 6 weeks, and has had 5 solicitors letters requesting he pay CM, all of which he has ignored.

To RedHelen. When I say avoid CMS costs I meant their fees for using their services. A private family arrangement would avoid such fees. Self Employed and Child Maintenance seems to be a grey area and nobody is able to give a clear answer as to how self employed income is established for the purposes of calculating child maintenance.

Ok I apologise. Yes you can have a private arrangement.

To BabyBarrister:

Re your comment below

"As a matter of interest actually the CMS tribunals is quite adept at examining accounts to take a view as to whether it is reasonable for a person NOT to draw down any or a large dividend in order to depress their net income - they WILL tho always take the view that it is reasonable to leave something in the company "for a rainy day" - the levels of savings for the company is dependent on the nature of the company - you can google these decisions."

I am Self Employed. CMS have made an assessment for CM and took into account all my sources of income as declared to HMRC. Ex has decided to challenge on basis that I could have paid myself more.

I am curious to learn more about what is reasonable to leave in the Company for rainy day depending on the nature of the Company. I am sole shareholder and Ltd Company acts as a payment vehicle.

Old post, but would appreciate any comments or where I can read more. My searches on Google have produced zero so far

Do the child maintenance service contact accountants of ex husbands who only pay themselves dividend payments.

My ex is a sole director and sole shareholder of his own limited company has declared to the CMS the minimum salary in order to just qualify for national insurance contributions therefore he financially supports his child at £18 per wee k instead of £250 per week.

His true salary is six figures.

I was his company secretary for 10 years and have the details of his accountant who does his tax returns and I have given this to the CMS.

Why do fathers not want to financially provide for their children? Has anybody similar experiences of this, in particular where they have had to involve their ex husbands accountant? Will the CMS contact his accountant for proof of dividend payments?

Much better to start your own thread than join a 6 year old dormant thread, but the CMS will not take in to account dividend income unless you apply for a variation. Do that within a month of the assessment and it gets backdated to day 1.

Taking a directors loan doesn’t make you a domestic abuser. That’s total nonsense.

Gave up reading this as you clearly will use anything. to paint your ex as an abuser even when they aren’t related.

80/90k turnover isn’t a huge amount for a business and he is allowed to retain profits to expand his business.

Business owners get such a terrible reputation on sites like this.