Dividends & CSA

mathew-s

To cut a long story short.....

I split from my ex-wife 6 years ago. Took her to court for residency of my son and was awarded shared residency, with him spending well over 50% of the time with me. This was after her son was arrested for a series of sexual offences! The ex is not happy is obviously i don't have to pay her any child maintence. She lives with someone else who has a decent job, she doesnt work. I also live with someone else now, who works. The ex has accused me of letting another man pay for my child....she cant seem to understand that it is her who is allowing someone else to pay for HER child. The only person who is not supporting our son is his so called mother!

She has spent the last 6 years trying to increase her level of contact so that I have to pay her CSA! Recently she made a claim to the CSA or Child Maintenance Service as they are now called. She lied to them about the level of contact we both had....obviously I was able to provide the court order and so they kicked her claim out....twice! She has now started court proceedings / mediation to increase her level of contact.

I have recently set up a business with my father-in-law which is doing very well. I am just preparing myself in case things go badly at court. My son will never go without anything, but I will do whatever I can to avoid paying that women anything, as it would not be spent on my son, it would by spent on alcohol and clothes for her!

The business is a Ltd company with 2 shareholders (me and the father-in-law) and 4 directors (my partner and the mother-in-law). I intend to change the business ownership by....

transferring my shares to my mother-in-law, with dividends being paid to her.
paying myself a minimal salary and claiming allowable expenses
paying my partner for making company bookings, accounts etc.

this will have the effect of allowing us to claim child tax credits for our 2 young children
paying dividends to my mother-in-law, who will then make gifts to my partner, such as holidays, paying lump sums from our mortgage etc.

just wondering if this sounds sensible....i have spoken to our accountant who has said it is and we are just maximising our income.....i just want to make sure as I will do anything i can to avoid paying her....in the 6 years my son has lived with us she has never contributed anything, I have even allowed her to claim child benefit to try and be civil....

any advice would be massively appreciated!

jaydeeuk1

I asked my accountant about changing shareholding for my LTD, CGT issue put me off but in your case I'm sure that would be preferable.

anselld

mathew-s wrote: »

this will have the effect of allowing us to claim child tax credits for our 2 young children
paying dividends to my mother-in-law, who will then make gifts to my partner, such as holidays, paying lump sums from our mortgage etc.

just wondering if this sounds sensible....

Sounds more like a contrived arrangement to scrounge benefits than to protect you against the Ex.

Pennywise

sounds like a settlement caught by s660 etc

mathew-s

Thanks ansel, I'd call it maximising income as suggested by an accountant, and also protecting my new family from a women who only cares about money and does not care about her son, and who has spent the last 6 years trying to get every last penny out of me

mathew-s

What's s660? Sorry it's all quite new to me

DUTR

mathew-s wrote: »

Thanks ansel, I'd call it maximising income as suggested by an accountant, and also protecting my new family from a women who only cares about money and does not care about her son, and who has spent the last 6 years trying to get every last penny out of me

Get every penny out of you? That's assuming you are loaded (which I doubt) Having a business does not automatically indicate rich, in fact often the opposite compared to a career based permanent post.
Reading the posts, part of the 'mistake' is assuming that in 2016 people are to depend on others to get by. If this current relationship doesn't work out , then my tip is only date those that can pay for their own meal, drinks etc.

mathew-s

No you are right, I'm not loaded, far from it, but that still hasn't and won't stop her. She is the one who won't work to support her own son, I work and will make sure my son has everything he needs. I have shared residency, which she is trying to change just so that she can try and claim child maintenance from me.
Surely a caring mother would have tried to get residency sorted first and then gone to child maintenance.
I'm not asking for relationship advice, I'm asking for advice on how best to legally protect my family from a women who is not interested in her children and only concerned in using her children to get money so she doesn't have to work herself

DUTR

mathew-s wrote: »

No you are right, I'm not loaded, far from it, but that still hasn't and won't stop her. She is the one who won't work to support her own son, I work and will make sure my son has everything he needs. I have shared residency, which she is trying to change just so that she can try and claim child maintenance from me.
Surely a caring mother would have tried to get residency sorted first and then gone to child maintenance.
I'm not asking for relationship advice, I'm asking for advice on how best to legally protect my family from a women who is not interested in her children and only concerned in using her children to get money so she doesn't have to work herself

Although you say you are not asking for relationship advice, it boils back down to that, it could also be argued that , you have seeked shared care to avoid paying child maintainence, so it all depends how you 'play' it. For me, I contribute my 15% net and then that's it, the fee entitles me to be absent, no drama about access or that daddy is a bad man, and mummy is always a good person.

mathew-s

I actually sought full residency which I got for 18 months, however it is now shared. I went for residency as I love my son, and social services gave me the choice of him going into care or living with me permanently due to concerns about his mother..... I hardly think this is me seeking residency to avoid child maintenance

mathew-s

I will fight her all the way in court for residency, I am only after advice should the worst happen and I don't get at least shared residency at court