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Relationships

Mumsnet has not checked the qualifications of anyone posting here. If you need help urgently or expert advice, please see our domestic violence webguide and/or relationships webguide. Many Mumsnetters experiencing domestic abuse have found this thread helpful: Listen up, everybody

Marriage is over now he's cutting me off financially

31 replies

Nafnaf · 28/04/2016 13:24

Hello lovely mumsnetters,

My DH and I are separating. We are having a sit down tonight to talk through immediate living arrangements. We have 1 DS (16 months) and he has 2 DC from first marriage (with us e.o.w). I work part time and he is a freelance agency worker. He has his own limited company, from which he pays himself a small salary and receives dividends from. He was also paying me a salary and dividends from the business, however with some digging I've found out he's stopped these, but hasn't told me.

My question is, how much would be fair for him to contribute towards the household bills while we both sort ourselves out? Up until now I've been paying all of my money into the joint account to cover bills and had about £100 left in my personal account for clothes/hair cut "me" stuff essentially. Now he's stopped my salary from the business i wont have any spare cash if i pay 50% of the bills. Can i ask him to pay more than 50% while we still live in the same house?

I'm planning on making a claim for WTC and anything else i'm entitled to. Have no idea how much ill get, which makes planning for the future incredibly hard. Any experience of making claims greatly appreciated....

OP posts:
Joysmum · 28/04/2016 17:40

Don't forget you'll need the funds to be able to pay your tax bill when it's due

Cabrinha · 28/04/2016 21:45

Using dividends to minimise tax is legal, yes.
But taking a salary from a spouse's business when you don't work in it (or are overpaid to do so) is a specific no-no. So much so that there is a guidance document - S660a - on 'husband and wife tax'.
OP has said she doesn't work in the business.

OP, you will have paid 20% tax on it (as it sounds like you use up your personal allowance on your own part time earnings). I would guess that during mat leave though you weren't using your personal allowance so in that case you'd have paid less than 20%.

You said your husband earns £50K - so into 40% tax bracket. So the money he's paying you should actually be taxed at 40%, but by passing it to you it has only been taxed at 20% or less. That's how it is still tax evasion even though you have paid tax on it.

OP, you need to discuss this with your solicitor, because whatever financial settlement you come to, you need to allow for the possibility of a tax bill!!

Him stopping paying you now makes no difference to what you've done in the past.

Please - don't delay in seeing a solicitor!

NameChange30 · 30/04/2016 13:04

How's it going OP? Did you talk to your husband on Thursday night? Have you contacted CAB or Rights of Women or a solicitor yet?

spirallinganxiety · 30/04/2016 14:26

OP, you need to discuss this with your solicitor, because whatever financial settlement you come to, you need to allow for the possibility of a tax bill!!

Why would anyone - solicitor or otherwise, need to know that the OP did not work for this salary? How is it relevant to her possible divorce?

Genuine question.

spirallinganxiety · 30/04/2016 14:38

(Meaning what's done is done and if the OP was in that situation through naivety and her husband's possible financial abuse, how would it benefit her to say anything to her solicitor about it? Especially at a time when she might be very financially and emotionally vulnerable in any case?)

Joysmum · 30/04/2016 14:42

The advice you quoted spiralinganxiety is very clearly warning that the solicitor needs to know to ensure that the OP's future tax bill is considered in the settlement.

It makes no mention of what work was done to earn the wage/dividends.

It's very sound advice.

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