Company dividends and SM

Hi,

I am self employed (own limited company). My stbx has negotiated an amount of SM that I will pay her which is considerable.

After SM (and CM which I do not have a problem paying), the only way I am going to make ends meet is through my company making a small profit.

Do I understand correctly that company dividends paid out to me in the future as sole owner are not subject to me paying her a % of these as part of SM or indeed CM? i.e. can she claim a % of my company dividends?

Also if I drop my salary by 10% due to difficult trading conditions, does my CM drop accordingly as I pay along CSA guidelines, 20% of my net salary?.

Thanks for reading. Any advice appreciated.

All i know regarding CM and dividends is the CSA are clamping down on SE , reason being you can pay yourelf a low wage but pay yourself large divindends, the PWC can ask for a variation on the grounds of income inconstient with lifestyle.

Angel,

You may be right. I don't intend to cut may salary by a crazy amount but a genuine 10% is just business sense.

Can my wife claim part of the company dividend?

The CSA wouldn't normally take director's dividends into account when assessing CM but Courts awarding SM do.