STBXH using his parents to hide income

[frustratedindivorce]

I wouldn't be surprised if someone else has come across things like this happening too. I'm desperate for some advice. I'm self representing because I can't afford a lawyer with things as they are. I have it on good authority form STBXH's business partner (who hates him but is trying to start out on his own) that he is using his parents to help him hide his income. It's a partially cash in hand tradesman business and he's making cash deposits into his father's account so he can save the money or spend it online using his dad's card and can then pretend that his income is a lot lower than it is. I'm really certain that this information is right and it everything adds up now, but I don't know what to do.

Can anyone advise me what I can do about this or how I can go about proving it as he will just say his business partner never said that or is lying. He isn't paying his father back for anything and he's not providing his family with financial assistance either. I can't afford to hire forensic accountants or anything like that.

How much money are we talking about?

I would say from what I know that it's close to £10,000

To OP

If the deposits are cash what prevents the father from saying he made the deposits?

Think you might be on a loser here. Even if there are Legal remedies the fees and costs will soon erode, if not completely consume, the £10,000.

Going to courts and saying "I have it on good authority" will get you nowhere. Courts will make decisions based on evidence and facts. Hearsay will be ignored.

If your STBXH's business partner hates him maybe they are stirring it up?

Good luck

You'll spend a lot more than that trying to prove it!

Unfortunately for that amount it isn't worth pursuing. Does his business partner take a bigger wage out of the business than your ex is claiming to? And what wage did your ex take before supposedly puthing money into his dad's account?

Nothing new here - plenty of people do this , or similar scams to avoid paying child support etc. Anyone who is self employed can do it easily, even without parents involvement , and there isn't a thing you can do about it. Sorry but that's life when divorce and money are involved. Good luck.

Thank you all who have replied. It doesn't matter to me because I'm not asking him for anything. The problem is that he's doing this to plead hardship and to get Maintainace from me.

HMRC?

Ask him to provide copies of the accounts as submitted to the govenment, for the last 5 years, tell him you will be sending HMRC a copy to ask them to confirm these are correct.
Also you can ask for copies of his bank account and any saving accounts he has...

Also tell him what you have been told, and ask him if he is aware his father will have to declare this money as a I, and pay tax on it .

As income and pay tax on it

OK, let's assume this 10k was a generous gift from son to father. How lovely of him.

There are still tax considerations -
www.moneyadviceservice.org.uk/en/articles/gifts-and-exemptions-from-inheritance-tax#how-much-can-i-give-to-my-children-and-family-tax-free

Or if the son is giving dad cash as payment for "work" he's done, that's fine, but then there are income tax, NI etc liabilities that need declaring and paying.
www.gov.uk/undeclared-income

I think all you can do is report it to HMRC and hope they will dig deeper.

Don't forget to repot FIL too as he will have to explain the source of the extra £10K he suddenly has.

Sorry this is happening.

During my OH’s divorce, he was also concerned that his STBXW would be able to conceal earnings from a new self employment venture and plead for higher maintenance.
His lawyer was really reassuring that the courts would look at what her income could reasonably be given her qualifications (picture a senior accountant) rather than what she was actually making at the time.

I don’t know what case law or precedent there is to support that, but the STBXW and her lawyer did indeed stop basing their negotiations on the recently reduced earning figures.

Dob him into HMRC with as much info as you can. Amounts. Dates. Business details. Parents name, address and any bank details if known. The more you give them, the more likely they are to be able to take the case on.

Thank you everyone - I really appreciate all your suggestions. If this was about quibbling to try and get money out of him I would just leave it, but he's really taking the piss pretending to be broke to try and get ££ from me.

Don't forget you know how much he earnt when you were a couple, so you can claim he has deliberately reduced his income to claim, does he have the children 50/50 if not he owes you, not you owe him...
Facebook posts of holidays, to expensive places, show he has enough money for that
His car is it expensive, high insurance ...

Top OP

What maintenance is he seeking? Child Maintenance or Spousal? If child maintenance then he would have to be the main carer. Is he?

If Spousal Maintenance that's a different subject that has no formula and is case specific.

I don’t know what case law or precedent there is to support that

The relevant Act of Parliament is clear that the courts must consider earning capacity as well as current income.

What maintenance is he seeking? Child Maintenance or Spousal?

In general, the courts can only order child maintenance where both parents agree the amount. If the parents cannot agree the only way forward is to use the CMS. Their formula does not take the resident parent's income into account at all. So, if he is after child maintenance, his actions will not achieve anything.

If he is after spousal maintenance, his earning capacity is a significant factor.

He's seeking maintenance for himself, no dc from this marriage. He seems to think that by living somewhere cheap and not very nice (he can afford something much better but chooses to spend on holidays/nights out etc) he can plead poverty. To be clear he was a classic case of a cocklodger.

Ok really confused, what ages are you?
If your are not old, a judge will laugh him out of court

I'm 28 and he's 31. Marriage was a disaster and lasted just under 2 years as the EA and major cocklodging behaviour started just after we got married and got much worse. He's perfectly capable of working normally, he doesn't have any limitations. He's after money because i have a house my grandma left to me (rather than my Ddad) because I'm physically disabled and can't work. I know this stinks, but it was my own stupid fault for marrying him.

2 year marriage, yeah the bloke is a Pratt
He can't really claim the house as marriage too short .
Can't claim support as he is too young.
He works, so show the judge his holidays and stuff.
Don't stress about the hidden money...
Try searching on here about short marriages, and maybe get a half hour free solicitors meeting, but his potential Futher earnings , his age , and shortness of marriage mean he has no chance,