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Original poster

Child Maintenance - CMS advise

34 replies

SunflowerPatch1 · 08/08/2018 22:26

Good evening,

My ex husband has changed my payment as per our agreement from a court order to CMS values that he has calculated himself. My questions are; does anyone have experience with the CMS when it comes to the CMS investigating his finances? I believe that my ex husband uses our company as his personal piggy bank and I would like to know if they will investigate it and take all his expenditure into account? Thank you !!

OP posts:
Japanesejazz · 08/08/2018 22:27

Why is he not complying with the court order?

Original poster
SunflowerPatch1 · 08/08/2018 22:29

Because apparently as I have now been told by 3 solicitors that they are only valid for 1 year and there is a clause in it that says either of us can opt out of it and move to CMS when ever we want. I was give very bad legal advice

OP posts:
PatheticNurse · 08/08/2018 22:32

Yes that is correct which is why in our Court Order an undertaking has been written in that as long as STBXH pays the set amount, neither of us will go to CMS.

What this does mean though is that my amount will stay static even if he gets a payrise but l am happy with what I'm getting.

Japanesejazz · 08/08/2018 22:33

You were indeed. The court order regarding payments for the children should have been until they were 18. The CMS will only take into account his tax return. I guess if he is self employed most of his earnings are paid in dividends?

Original poster
SunflowerPatch1 · 08/08/2018 22:35

Hes not self employed he is employed by the company as its LTD. HE puts thing though like holiday , dinners his partners mobile phone bill that sort of thing.

OP posts:
Japanesejazz · 08/08/2018 22:38

But how does he get paid? How many other employees are there?

Original poster
SunflowerPatch1 · 08/08/2018 22:39

There is only one other employee. He takes dividends and a salary but has to declare it as he's just bought a 500k house

OP posts:
ThunderStruckMuck · 08/08/2018 22:39

If those are expenses that HMRC has accepted as valid then no CMS won't do anything about it. They will count his income including dividends though. My guess is that he's set it up in such a way that his income is fairly low....I'm gonna guess 30kish because that's what the accountant will have set it at to minimise tax. Does he have a partner? If so I can almost guarantee she's taking dividends as director of the company. If that is the case you're in a tough position.

Original poster
SunflowerPatch1 · 08/08/2018 22:43

He does have a partner but she's not a director of the company. My ex and I are equal shareholders of the company he's is a director and i am now shareholder with equal voting rights.

OP posts:
ThunderStruckMuck · 08/08/2018 22:44

Are you sure he hasn't opened another LTD? It's very easy to do and then switch the contracts over one by one until the old business is dead. Or he can open a sole trader company and then not much is public at all.

Original poster
SunflowerPatch1 · 08/08/2018 22:46

I have checked on companies house. He did that during the divorce but that company has now been closed. There is no other company that he is director of.

OP posts:
ThunderStruckMuck · 08/08/2018 22:46

BTW you had a spectacularly crap solicitor if they didn't tell you either of you either apply to vary the order or go through CMS after s year... were you awarded spousal maintenance? Most women fight harder for the SM award because to alter that amount the ex has to apply to court rather than just going to CMS.

Original poster
SunflowerPatch1 · 08/08/2018 22:48

Yes I agree on the solicitor I am so angry with them. No i didn't get SM as she told me it would interfere with my benefits.

OP posts:
ThunderStruckMuck · 08/08/2018 22:48

If he's done it once my guess is sole trader. It's the easiest way to hide the money. You pay higher taxes but it will take a forensic accountant to find it....or he's opened an offshore one...None of this will be cheap to find and even then it will take CMS forever and a day to look at your proof. You'll have to decide if it's worth the headache.

ThunderStruckMuck · 08/08/2018 22:49

Did you check for companies with her listed as a director? His siblings? Parents? All have been done before.

Original poster
SunflowerPatch1 · 08/08/2018 22:50

Honestly I just want whats fair and to be shot of him. He haunts my life and I have to live with what he's done and how he got away with it.

OP posts:
greenberet · 08/08/2018 22:51

CMS will take dividends into account but you need to ask them to assess under variation of income. They will go to HMRC to get confirmation of dividend income. In the meantime send through whatever you have -as a director you should have access to all this info I'm assuming

Japanesejazz · 08/08/2018 22:52

CMS don’t take dividends into account. You can appeal this. But initially they will set the payments as per his tax return. Which will be very low compared to his actual earnings. Good luck, I’m 3 years down the line of appealing. Started on payments of £750 per month he’s now got it down to £104.99 per month. He earns between £150-£175k a year. He has to pay £1k per month spousal maintenance so after that and his child maintenance on paper he only has £80 per month to live on. Not sure how he affords 4 overseas holidays a year on that! The system is a mess OP. I wish you luck with it

Original poster
SunflowerPatch1 · 08/08/2018 22:52

Unfortunately I am not a director just a shareholder so don't have much access but thank you for that information!!!

OP posts:
Original poster
SunflowerPatch1 · 08/08/2018 22:54

OMG thats terrible.

OP posts:
greenberet · 08/08/2018 22:55

Hope you are complaining about your solicitor - I'm another one who received bad advice and I've complained to both SRA & ombudsman - too many get away with it!

Original poster
SunflowerPatch1 · 08/08/2018 22:56

They don't deal in family law and I don't have any proof that they gave me bad advice so not sure if I should have or not.

OP posts:
ThunderStruckMuck · 08/08/2018 22:56

Why on earth did you have a solicitor that doesn't deal in family law?

Original poster
SunflowerPatch1 · 08/08/2018 22:57

Sorry they don't deal in family law any more! they did then don't now

OP posts:
greenberet · 08/08/2018 22:57

CMS do take dividends into account - they are in my case! You have to make sure they know it is dividends and they contact HMRC to confirm.