Claimed Dividend Non Payments

**BlasterBates** · 8 March 2020, 13:52

Originally posted by WildGoblin View Post

So, long story short.

Whilst using my former Ltd Company I decided to make my ex a 25% shareholder.

At the time she was expecting our first child and due to go on extended maternity leave.

She opened a separate bank account (although it was a joint account) and her dividends were then paid in.

She spent them as she saw fit for her own enjoyment. In fact more went in than the dividends proper.....

Now she is claiming that she never knew anything about 'dividends' and demanding that I pay her these.

She was involved in all discussions regarding my gifting her shares etc. but few records were kept.

I've not been able to find any case similar anywhere?

Furthermore she is trying to take me personally to court, not the company. Is that right?

Any opinions appreciated. It all seems dubious to me - but I'm not 100% sure.

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You simply send her a record of the dividend payment from the company records and the bank statement showing the transfer.

If you don't have that evidence then she legitimately claim that you didn't pay it.

**northernladuk** · 8 March 2020, 14:24

Originally posted by BlasterBates View Post

You simply send her a record of the dividend payment from the company records and the bank statement showing the transfer.

If you don't have that evidence then she legitimately claim that you didn't pay it.

This. I'm struggling to see what the problem is here. If you paid them you will have evidence surely. Case closed.

**Scruff** · 8 March 2020, 14:44

The signed Minutes of YourCo. and the Annual Financial Statement will be proof enough, plus the proof of payment into her account.

**Ploptimus** · 8 March 2020, 16:53

As all other stated it should be clearly documented so is not really up for debate.

The thing that sticks out thought to me is the specific mention it was paid to a joint account which encourages me to one of two hypothesis:

1 She thinks she can scam you as even if there is proof of paying in, it is to a joint account so she’ll claim she never saw it.
2 You told her you were going to add her as a shareholder to take out twice the dividends and pay less tax and she decided to screw you over on the divorce knowing this.

**WildGoblin** · 8 March 2020, 18:39

Thanks guys,

It really is as it sounds - Bank accounts & paper trail all check out, as no wrong doing has occurred.

Joint Account is my worry but all transactions show me paying in - her taking out.

I may very well be 'over thinking' it and was worried I had not taken into account something fundamental.

Cheers.

**GhostofTarbera** · 8 March 2020, 18:46

Claimed Dividend Non Payments

And you have paid subsequent dividends?

What was her share split

Did you spend you wife’s and child’s dividends from that joint account ?

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**WildGoblin** · 9 March 2020, 22:05

Whilst not in the scope of my initial question the dividends stopped being paid into said bank account after we separated.

Instead they were used to offset her financial commitments in renting a property from me (we weren't married, fortunately). Something she would not have been able to do without them.

Withdrawls from the account were, except for about a grand or so over the three years in question, made by her (our child was never a shareholder).

This continued until the winding up of my Ltd Company.

Thankfully the overwhelming opinion seems to be what I had hoped - without any unexpected 'yeah buts'.

My books show that the dividends were correctly recorded and demonstrably said monies were made available to her, for her sole use and enjoyment.

Thanks again.

**eek** · 9 March 2020, 22:24

Originally posted by WildGoblin View Post

Whilst not in the scope of my initial question the dividends stopped being paid into said bank account after we separated.

Instead they were used to offset her financial commitments in renting a property from me (we weren't married, fortunately). Something she would not have been able to do without them.

.

so the truth eventually appears in the story - that puts a very different picture on it - robbing Peter to pay yourself isn’t going to go down well when it comes to court especially as a child was involved.

I would suspect you will have calls from child maintenance after you as I think you will have some explaining to do.

**northernladuk** · 9 March 2020, 23:21

So you've given an unmarried partner shares? Hope you did it right. The fact you mention your child wasn't a shareholder makes me wonder.

She could dob you in to HMRC if you aren't careful.

Claimed Dividend Non Payments