Best option,need advice

FBaby

I agree that it sounds like you are both looking at loopholes. You seem adament that you ONLY want to pay out £1000, whether it called dividends or maintenance, so want to know if there is a way to do that where she could compensate what she could get from you in benefits. That is, if by claiming more, she is losing the equivalent benefit, there is no incentive for her indeed try to get more out of you.

As stated by Kevin, any such agreement dependent on benefits entitlement and current situation is extremely dangerous as indeed, circumstances could change very quickly and the initial agreement becomes completely redundant.

In any case, the current system is going against your plan. It would work if it was maintenance rather than dividends that was taken into consideration so that you could agree to give no maintenance and she could claim benefits to make up the difference, however, as it is, maintenance is diregarded, but dividents are taken into account. Refusing to accept the dividends would be seen as deprivation of capital and she would be a real fool selling her shares at the suggested price as it is likely that she will be better off long-term getting the income from dividends then relying on tax credits with rules about to change and a likelihood to be entitled to a lot less than what she could get in dividends.

danboy775

galangm8 wrote: »

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...

are you for real, a f*****g scam!!! you call a family splitting up a scam!!!
For your information i am the one who has got my business up and running, nothing to do with my ex, she has merely had to sign the odd peice of paper now and again.
So where do you suggest she go if according to you she shouldnt have to go back to a council house? just go out and buy another one.....get a grip!!
If you got all the facts, she works part time so she is ENTITLED to claim tax credits or whatever they are called nowadays to support her meagre part time wage, the money i provide is to bring up our DAUGHTER not for HER to live on..
Your just another tw@ jumping to conclusions and making ridiculous accusations........

FBaby

But you agreed with her that she could get 20%. Maybe you see that as a big mistake with hindsight, but you can't ignore it because you wish you never had. She doesn't just have a meagre income, she has a decent one if she adds the dividends to her income. You need to accept that the dividends she gets are NOT maintenance for your daughter, it is what she is entitled to receive regardless or whether you want to support your daughter or not.

Idiophreak

danboy775 wrote: »

So where do you suggest she go if according to you she shouldnt have to go back to a council house? just go out and buy another one.....get a grip!!
If you got all the facts, she works part time so she is ENTITLED to claim tax credits or whatever they are called nowadays to support her meagre part time wage, the money i provide is to bring up our DAUGHTER not for HER to live on..

If you look at "the facts", she's entitled to a £1000 divdend each month from an investment, around £600 in CM from you and then has a part time wage on top of that. She should get this money, declare it all, then whatever she's ENTITLED to will be paid to her. In any case, she'll be getting over £2000 / month...Why does galangm8 need to "get a grip" for suggesting that she might be able to make do on that amount without turning to the council for housing?

danboy775

FBaby wrote: »

I agree that it sounds like you are both looking at loopholes. You seem adament that you ONLY want to pay out £1000, whether it called dividends or maintenance, so want to know if there is a way to do that where she could compensate what she could get from you in benefits. That is, if by claiming more, she is losing the equivalent benefit, there is no incentive for her indeed try to get more out of you.

As stated by Kevin, any such agreement dependent on benefits entitlement and current situation is extremely dangerous as indeed, circumstances could change very quickly and the initial agreement becomes completely redundant.

In any case, the current system is going against your plan. It would work if it was maintenance rather than dividends that was taken into consideration so that you could agree to give no maintenance and she could claim benefits to make up the difference, however, as it is, maintenance is diregarded, but dividents are taken into account. Refusing to accept the dividends would be seen as deprivation of capital and she would be a real fool selling her shares at the suggested price as it is likely that she will be better off long-term getting the income from dividends then relying on tax credits with rules about to change and a likelihood to be entitled to a lot less than what she could get in dividends.

why would i want someone in my business that has no input or plays an active role in the running of the business taking a chunk out of it every month, would you want that for your company?

I say £1000 because that to me seems like a reasonable figure and its in the region of what her dividend payments were anyway, she's not looking to compensate anything or trying to fiddle the system as some prob think.

She would not be refusing to accept dividends, she would sell all shares in the company back to me for cash value. A simple transaction, so shes not depriving herself of income she is cashing in her shares.

danboy775

FBaby wrote: »

But you agreed with her that she could get 20%. Maybe you see that as a big mistake with hindsight, but you can't ignore it because you wish you never had. She doesn't just have a meagre income, she has a decent one if she adds the dividends to her income. You need to accept that the dividends she gets are NOT maintenance for your daughter, it is what she is entitled to receive regardless or whether you want to support your daughter or not.

yes at the time when things were good and roses were red and all that !!!!.....we were living together so the money was coming into the same household benefitting us both which is no longer the case.
I am well aware the dividend is NOT child maintenance, and please show me where i have said i DO NOT want to support my daughter!!! quite the opposite infact.
Ok so tell me what her income is then.....£__+dividends?

danboy775

Idiophreak wrote: »

Why does galangm8 need to "get a grip" for suggesting that she might be able to make do on that amount without turning to the council for housing?

galangm8 suggested that she does not need to move back to a council house not that she wouldnt be able to "make do" where else could she go.......just go and buy a house just like that.....

danboy775

kevin137 wrote: »

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...

Thanks for this, somebody who understands what we want to achieve here, a mutual agreement that benefits us both and will avoid bitterness on both sides.

FBaby

I can understand how you wouldn't want someone you don't want in your life any longer benefiting from the business you are managing where you are the reason for the dividends being what they are. Yep, it's infuriating BUT you should have known when you agreed to make her a director that that was a risk you were taking. Surely you were not naive enough to assumed with certainty that she could never leave you or you could never fall out of love for her.

What one can assume from your post is that she might be ok to accept a compromise as long as she can top off what she could get out of you in benefits. Unfortunately, it looks like that won't be the case.

The question is, will she be reasonable and accept that she is already getting a very good deal getting dividends from a business she has no involvement and getting a decent overall income from frankly doing little work (working 16 hours when you only have one child of 10 is quite a nice life), and therefore accept not to receive any additional income from you in terms of maintenance, or will she try to up her income from any source to the maximum she can get and therefore expect maintenance from you unless she can get the same out of benefits?

Idiophreak

danboy775 wrote: »

galangm8 suggested that she does not need to move back to a council house not that she wouldnt be able to "make do" where else could she go.......just go and buy a house just like that.....

There's this crazy thing I've heard of called "private rental" - maybe she could look into that?