Amicable divorce - D81 form, figures for limited company director

readingrunner

Myself and my wife are currently going through a very amicable divorce. We split everything after separating, have agreed we don't want to go after each other's assets, and have come to an arrangement with the kids. However, we have both been asked to complete a D81 'statement of financial information' form for the courts. I am an IT contractor, and I have set up a limited company with myself as director, so I have a few questions about some of the information it asks for as it's not as straightforward as normal employee. 

I've no problem providing any of the information - I just want to make sure I'm providing it correctly.

1. It asks for a figure for my total capital, such as savings. I have some of my own personal savings in a personal savings account, but the bulk of my capital is in my limited company account. Should this capital figure include capital in the limited company?

2. It asks for a figure for my liabilities. In order to buy my own flat after we separated, my mum lent me some money to go towards the deposit. Can/should I list this, even though it's an 'informal' liability with a family member?

3. It asks for a figure for net monthly income. I have a couple of questions here. I pay myself a tax efficient monthly salary, and then top up with dividends. I am assuming this figure should include salary AND dividends? And also, my dividends may vary from month to month depending on my outgoings, so it's not the same figure each month. Should I put an average over the past 12 months?

pphillips

If you're filling in a D81 then you'll have a solicitor who can answer your questions.

TBagpuss

readingrunner said:

Myself and my wife are currently going through a very amicable divorce. We split everything after separating, have agreed we don't want to go after each other's assets, and have come to an arrangement with the kids. However, we have both been asked to complete a D81 'statement of financial information' form for the courts. I am an IT contractor, and I have set up a limited company with myself as director, so I have a few questions about some of the information it asks for as it's not as straightforward as normal employee. 

I've no problem providing any of the information - I just want to make sure I'm providing it correctly.

1. It asks for a figure for my total capital, such as savings. I have some of my own personal savings in a personal savings account, but the bulk of my capital is in my limited company account. Should this capital figure include capital in the limited company?

It should include the value of your interest in the limited company - if you are a 'one man band' that's likely to be the total value of the assets the company holds, including any bank accounts, less any debts the company has. If there are other shareholders, then it will be your share of those assets.  

2. It asks for a figure for my liabilities. In order to buy my own flat after we separated, my mum lent me some money to go towards the deposit. Can/should I list this, even though it's an 'informal' liability with a family member?

IF it is a genuine loan yes. If it was declared as a gifted  deposit to your lender then you should not now claim it as a loan, as it was a gift.

3. It asks for a figure for net monthly income. I have a couple of questions here. I pay myself a tax efficient monthly salary, and then top up with dividends. I am assuming this figure should include salary AND dividends? And also, my dividends may vary from month to month depending on my outgoings, so it's not the same figure each month. Should I put an average over the past 12 months?

Yes, the figure is net of tax and NI but before any other deductions, and includes income from all sources.  You can always add in para.9 of the form that your income fluctuates and the fuigure you have given is an average over 12 months 

The point of the form is so that you and your wife can feel confident you know what the assets are and so that the Judge can see that the order they are being asked to approve is fair. 

You can always add additional information in s9 if you think it is needed in order to let the Judge (or your ex) have a clear picture  of your situation.