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Myself and my wife are currently going through a very amicable divorce. We split everything after separating, and have agreed we don't want to go after each other's assets, and have come to 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?
Replies (1)
Hi Chris
In answer to your questions:
Generally speaking, you should include all the assets you hold – including any held in a limited company.
The court will usually disregard what is called a ‘soft-loan’ that it a loan between family members that isn’t documented and with a repayment schedule and interest payments set out – so in this case it is unlikely to count it when considering if your agreement is fair
Your net monthly income should include both salary and dividends and yes as you say an average of dividends over the past 12 months will suffice
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