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What are we each entitled to in our divorce settlement?

What does the law say about how to split the house, how to share pensions and other assets, and how much maintenance is payable.

What steps can we take to reach a fair agreement?

The four basic steps to reaching an agreement on divorce finances are: disclosure, getting advice, negotiating and implementing a Consent Order.

What is a Consent Order and why do we need one?

A Consent Order is a legally binding document that finalises a divorcing couple's agreement on property, pensions and other assets.

 

Is Cash in Hand Counted as Salary

  • ees3dc
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16 Jun 23 #521275 by ees3dc
Topic started by ees3dc
I earn a modest salary and my partner is officially on about 25% of my salary. However, she earns a further £18,000 a year in cash by cleaning, selling on eBay, car boot sales etc. As she's paid cash in hand, there is no formal record of this employment. There are however banking records of all this money being paid into our joint account.

Is this "income" taken into account when calculating a maintenance allowance or Clean Break fee? It would seem very unfair otherwise as this effectively takes her salary up from 25% to 50% and would make a considerable difference in the maintenance allowance.

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16 Jun 23 #521277 by hadenoughnow
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Does she declare the income and pay tax on it?
Are you talking about child or spousal maintenance? child maintenance has a set formula based on the income of the non resident parent.
Spousal maintenance is increasingly unusual. It is based on clear need and ability to pay. Any universal credit is reduced £ for £ so if benefits are part of the mix this has to be considered.

Hadenoughnow

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17 Jun 23 #521281 by ees3dc
Reply from ees3dc
No, she's not declaring it(!) I said that is not a good thing to be doing.
So are clean breaks now more commonplace? I don't see any online calculators for clean breaks. Can anyone point me to any please?

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18 Jun 23 #521282 by WYSPECIAL
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Clean breaks are the preferred outcome unless they can’t be achieved.

You need to post details of ages, incomes, children and all assets for someone to comment.

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18 Jun 23 #521286 by ees3dc
Reply from ees3dc
3 children all over 18. Total assets £1.5m. My salary £70K, her salary £25K + her undeclared £18K. Thanks.

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