Child Maintenance through Limited company

[SoSBeingAMumIsHard]

Has any receiving parents successfully
won their disputed maintenance payment when the paying parent is under declaring their true income by paying themselves less than minimum wage through a limited company?

Thank you for your reply. Good luck with everything! x

Hi, can I ask was your ex living with anybody? I'm just wondering if he could have said she paid the expenses? And got away with it that way? Just anticipating the lies that I can expect??

Just to note that the ‘lifestyle inconsistent’ with earnings variation no longer exists anymore. Only assets, unearned income and diversion of income grounds.

However information regarding lifestyle can still for submitted to support a ‘diversion of income’ variation.

OK, thank you

No he wasn't but he had a gf. It helped that he had bought the kids expensive gifts but refused to pay me anything towards their food. My ex had to show bank statements so they could see he'd had 2 expensive holidays to Maldives for 2 weeks and to Cape Verde for 10 days all withing 7 months. They were clearly there in his bank statements and he'd paid for gf too. He'd also bought her an expensive watch and that was on bank statement too. When this accountant asked him why he'd been on 2 expensive holidays whilst not paying towards his children's support he just sat there looking furious and saying nothing.

The value of the company may also fall too be taken into account so if there is a lot of money in the company bank accounts or its paying handsome dividends you may be in luck.

Well I think he will do one of two things.. pay himself mainly a dividend or pay his girlfriend instead of himself, so that it appears he doesn't have an income. Dividends won't need to be declared on a tax rtn until 31st January 2027 and so I wasn't sure of the depth that CMS delve in to. Knowing about the two variations I can raise does help though.

I am really stuggling with this too. My ex owns a limited company which is small but uses it for living expenses and then pays himself minimum wage. He also has paid no maintenance for the last few years. Before I can go down financial investigation route I have to wait for the court action on missed payments. This is such a slow process. Any advice on how to navigate the diversion of income if paying parent is using the business to pay basic living expenses?

My ex did this.
Owns a Ltd Co and Pays himself nmw £19k Pays his wife who is listed on company house as his secretary a much higher wage than himself.
He does his tax returns annually via an accountant, as his wife is listed as the company secretary and what he's paying her is within what an average company secretary would get £45k. So cms said they can't do anything.
He's got savings in the thousands in the business but he's said this is for expansion of the business In the future, which is possibly true but no doubt once ds is of age my ex will draw a dividend too. Ds is 14.
He takes no dividends.

They also checked his bank accounts however he doesn't have a personal one only a joint with his wife which both salaries go into. All expenses out of that account apparently were paid via his wife's card. Holidays booked in her name. Both cars purchased in her name with her card and registered in her name.

My case reached the fraud team and I got a persistent case worker who initially could not make headway. I discussed settling with a lump sum as there were arrears with liability orders in place. We agreed on this course as a final attempt.

He was self employed claiming to earn £12000. He refused the lump sum payment after weeks of negotiation. The case worker said he was not satisfied wth his accountants declaration and asked him to disclose 3 years of financial paperwork. The caseworker received an email from him 12 hrs later asking for my bank details and he made payment.

Please note I closed my case. The stress was too much but also my gs was 16 and was applying for jobs. My route is not for everyone.

The CMS said they had rarely encountered such levels of avoidance for his own little boy. For example, he would make a one off payment after 6 months or so, so he was counted as compliant. He hid his prestige car at his parents address and regularly applied for a nil contribution which he got based on his declared earnings. He even had his house transferred into his parents names to avoid a charge being attached.

I admire your determination and tenacity.

I've been to a tribunal for this. CMS didn't turn up. There was a finicial person on the panel and 1 other person. You need some type of evidence. I asked them if they could look into exs bank accounts... they wouldn't. Ex said family was supporting him and helping him. After that he paid again because he knew long term he couldn't keep up with earning 88.00 a week!

Ridiculous system, I don't know why they don't request bank statements in the first place!

Its so sad that so many men get away with supporting their own children, making their childrens mother financially vulnerable and stressed. Do they not realise the impact it can have on their own childrens lives and wellbeing? I am using a food bank at this point.

@Bumblebee47
hi, I was wondering how did you get on with the tribunal? As I’m going similar route, just received mandatory reconsideration rejected for not sufficient evidence.

Still waiting for first hearing - 10 months since appealed. But the judge has directed for ex to provide all financial info (inc joint bank accounts) which hasn't been provided as yet (only a very small amount has been provided)….

hope your will be successful.
I have only submitted my appeal to tribunal around 3 weeks ago, and few days ago my ex sent me a screenshot of a letter posted to him stating ‘thanks and how could you do this’. Feeling insulted now. It’s so stressful going this path to get some financial support for your own child plus him having the cheek!
Anyway, In my form I requested them to investigate his two personal accounts and one business account, I know he has been transferring his profits there, and then using it for personal expenditures.
Now I’m worried he won’t disclose all his accounts or was hiding his profits somewhere else.

Ive not received anything from them yet so will need to give them a call this week.
How are you getting on with your process?

My ex went self employed in 2019, payments went down to £10pw, as he claimed he was only earning £8k a year, I never pushed for more money, as I thought 'how can the paying parent manage a mortgage and CMS on only £8k a year, fast forward to 2023, I asked CMS if the parent received dividends, turns out his true income is £60kpa and now owes £30k in unpaid maintenance, CMS have placed two charging orders on his family home in the past 2 years, paying parent has stopped all payments since 2023 after him not declaring dividends was flagged up, he has two rental properties that could be sold to recover the debt, but at the moment the CMS aren't pursuing further action as after two years of getting charging orders from the arrears building up, they're now saying a judge wouldn't force sale on a home which he lives in with his other two children, even though they could of put the charging orders one on of the rental properties instead, which would mean his family home wouldn't have to be sold, if the paying parent is self employed and non compliant there is really nothing the CMS can do to enforce payments, some parents will go very far in order to not pay, it's severe child neglect and CMS appear to have no powers like they claim they do.

My immediate comment is that the CSA have failed miserably

Firstly why is the only charge on his home why not the two rentals?

The CSA have a lot of powers what they need to do is use them, and do so effectively.

I would suggest making a formal complaint about their failure to enforce the debt and apply a charge to his two rental properties.

Give them a month and if no reply then either yiur MP or the Independent Case Examiner can get involved

@JohnofWessex @Nidnightbloom

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