Best option,need advice

kevin137

I think we are all missing something here...

She has a legal right to the dividend anyway, so that would affect the right to claim.

You cannot paint it any other way apart from the Dividend cannot be child maintenance and as such not be affecting her benefit claim and WTC and CTC and HOUSING BENEFIT are ALL BENEFITS, so you are trying to dress this up as Child Maintenance when what it really is is Benefit Fraud.

As has been said, she owns 20% of the company, you pay a dividend on this of between £800-1000 a month and as pointed out that would mean you would have to pay a further 15% on YOUR income which could be as much as £600 a month, so in reply to you.

Pay half the debt, it is half yours, let her pay the other half.

Buy her out or sell the company but she owns 20% so this cannot be portrayed legally as anything other than what it is.

You will end up paying CS whatever way you look at it if she gets the hump, you fall out or any other scenario that gets her upset...

You come across as a genuine bloke that wants to help, you are going to make things awkward for the pair of you if you do this and it turns out it is illegal...! It could very well come back to haunt you...

kevin137

What i will point out, is that i do not fully understand how the dividend structure works, so will ask if someone else could clarify...

If a length of time went past in this case, where a Dividend was NOT paid... What would the legal entitlement be to have it reintroduced in the future at the same rate of 20%

The more i look at this the more iffy it seems...

danboy775

kevin137 wrote: »

What i will point out, is that i do not fully understand how the dividend structure works, so will ask if someone else could clarify...

If a length of time went past in this case, where a Dividend was NOT paid... What would the legal entitlement be to have it reintroduced in the future at the same rate of 20%

The more i look at this the more iffy it seems...

Nothing iffy about it kevin.
Of course i am not an idiot, i know she is entitled to take her dividend every month & also to go to the CSA if she wished but that is not how we want things to go, i have always said i would make sure she is ok, no debt etc and i am true to my word. When things get messy and CSA get involved it changes everything

If you read my initial post, i am asking what is her best option (without involving CSA, courts etc) stay in the business and get approx £1000 per month as a dividend or sell her shares (50 @ £22) then continue to receive £1000 a month in child maintenance.

In theory she could take me to the cleaners and go for everything, where does that get either of us, i'd have to sell the house, which would have eventually got left to my daughter anyway and make things difficult between us for the future.
Not everybody is out to screw each other over as seems to be the general concensus

Idiophreak

danboy775 wrote: »

If you read my initial post, i am asking what is her best option (without involving CSA, courts etc) stay in the business and get approx £1000 per month as a dividend or sell her shares (50 @ £22) then continue to receive £1000 a month in child maintenance.

If you decide that her best bet's to sell these shares (that earn her £800-1000/month) for £1100...Can I just say "dibs" on being the buyer?

danboy775

Idiophreak wrote: »

If you decide that her best bet's to sell these shares (that earn her £800-1000/month) for £1100...Can I just say "dibs" on being the buyer?

she gonna sell her shares for £1100 then continue to receive £1000 a month anyway. £1000 a month that will not go against her tax credits / benefit claim

danboy775

if you continues with the dividend this will be taken into account for any claim she makes for benefits

kevin137

danboy775 wrote: »

she gonna sell her shares for £1100 then continue to receive £1000 a month anyway. £1000 a month that will not go against her tax credits / benefit claim

That is a far simpler way to do things, it OVERPAYS the CS so helps with that, it keeps clear of any problems with dividends, it frees you up from the legal ties in the future from the business which in all fairness is a good thing regardless of how good your relationship is, and it means she will not be risking anything with the benefits agency by receiving the money...

I may of sounded harsh, but the way it read, was that you wanted to pay the money to avoid CSA and she wanted to receive the money to avoid Benefits... I understand you want to do the right thing, but do the right thing longterm...

This is by far the best choice you can both make, you can formalise it through the CSA if you wanted with it being assessed and paid by direct payment, or you can have a legal agreement drawn up with a solicitor and then payments marked as Child Support could not be argued in keeping with that contract and give added protection to you both.

You just do need to think about the consequences long term though, business with her owning 20% and you having a new partner can be nasty, her having a new partner and you cutting off money because he is living it up on your money etc etc... it happens, even if you are sure it won't, how many people have been through this in the past...

good luck though...

kevin137

danboy775 wrote: »

In theory she could take me to the cleaners and go for everything, where does that get either of us, i'd have to sell the house, which would have eventually got left to my daughter anyway and make things difficult between us for the future.
Not everybody is out to screw each other over as seems to be the general concensus

Taking you to the cleaners in this day and age is not as simple as you think it is... Look long term in this, £1000 a month is £12000 a year, 10 years left of CM is £120,000

Would she get this if she took you to the cleaners now...???

The company value which she owns a percentage of is maybe £5,000 if she was lucky, forget what it could earn, if you fold it, it is worth nothing... Then property, if you own then all well and good, but if you have a mortgage, then she may get a small payout...

I understand what you mean and the reasoning behind your actions but life changes, and while you will always want to provide, it may not always be possible at the level she wants. if business takes a turn for the worse, will you still be able to fund £1000 a month and pay all your bills, what about if you move on and have another child, and it takes a turn for the worse, how does that leave you financially with new partner and old...? So you can understand why i say what i say...

Make plans yes, but make plans that leaves you able to pay YOUR bills as well... As if you can't do that, then it gets bad very quickly...

galangm8

kevin137 wrote: »

Taking you to the cleaners in this day and age is not as simple as you think it is... Look long term in this, £1000 a month is £12000 a year, 10 years left of CM is £120,000

Would she get this if she took you to the cleaners now...???

The company value which she owns a percentage of is maybe £5,000 if she was lucky, forget what it could earn, if you fold it, it is worth nothing... Then property, if you own then all well and good, but if you have a mortgage, then she may get a small payout...

I understand what you mean and the reasoning behind your actions but life changes, and while you will always want to provide, it may not always be possible at the level she wants. if business takes a turn for the worse, will you still be able to fund £1000 a month and pay all your bills, what about if you move on and have another child, and it takes a turn for the worse, how does that leave you financially with new partner and old...? So you can understand why i say what i say...

Make plans yes, but make plans that leaves you able to pay YOUR bills as well... As if you can't do that, then it gets bad very quickly...

I don't even believe a couple complete with child, who have obviously worked hard getting a business up and running, nice little income and he can afford to pay £1000 per month in CM would even resort to living on benefits and certainly not in social housing.

Sounds like a scam they're trying to pull off or the mother knows nothing about her soon to be ex's plans for her...

Idiophreak

danboy775 wrote: »

she gonna sell her shares for £1100 then continue to receive £1000 a month anyway. £1000 a month that will not go against her tax credits / benefit claim

...my point was just that £1100 to buy out shares that are costing the business £1000/month seems very cheap...