Divorce - my solicitor wants to see DHs company accounts. What exactly does she hope to see and how will it clarify anything?

[CompassionFatigue]

DH has simply directed me to Company House website, which really only shows how much the business currently has as net assets. I assumed solicitor was after more info than this?? Like how much the business earns, how much corporation tax it pays etc etc? I don't want to phone to ask solicitor to clarify in case a. I sound thick, b. It counts as a consultation to be billed for!

Your solicitor is quite right. Full accounts needed.

If your DH is taking a lot of perks instead of wages....that can be used as proof of income... tell him you need profit and loss . And balance sheets of the company...

I assume its a small company filing abbreviated accounts (just a short balance sheet). You need tge full acvounts showing detailed profit and loss and balance sheet going back 5 years preferably.

The company is worth something. The book value of assets is a minimum value. It is worth a multiple of profits (how many years of profits some one will pay to acquire it). You are owed half that value.

You can also see what he is paying tge directors or if not taking salary himself how much is left to take as dividends and what dividends are paid.

Abbreviated accounts do show the balance sheet movement year on year. Are net assers increasing? The profit for last year will add to this years net asset vale but not if he paid dividend.

She probably just wants to know how complicated/ profitable it is as you might need to get the company valued in which case a forensic accountant would want to see this info.

Also bear in mind there may be no such accounts nor any required to be prepared by law so in that case you might be asking to see the corporation tax returns of the company (as well as husband's income tax returns) and any evidence of spending and invoices issued. I was involved with a small company and the accounts the accountant was obliged to prepare by law contained so few details we actually asked her to add a few things in (as we wanted the local residents - it was an association to be able to see better the spending and we paid extra to have the accountant add that in) and I suppose the excel spread sheets in that case (or accounting software in other cases) or in some cases paper books and records might give the details too.