Hi all, throw away account as some family know me on here.

My dad is expecting to divorce my step-mom in the near future. He has told me and over the past few months he has asked me for help. The situation gets complicated and I am confused and conflicted, as I want to help my dad but don't know if I would put myself at any risk if I get involved as he proposes.

So the background: my dad has been married nearly 20 years, he has two daughters with my step-mom, they are 16 and 18 years old. My dad went to prison for a year (2 years ago) for contract law issues with a previous business he was director of (important factor).

When he came out of prison there was resentment between him and my step-mom they aren't resolving - there were issues before, this is not unexpected they may get divorced, the time apart just increased these differences.

So my dad has started working as a sole trader and earning very good money again (>15K month). He has asked me to register a company and be the director, so he can be employed by this company and take a lower salary from the company. He will continue to work as usual but take approx. 5K month as salary. This way when he gets a divorce, his earnings are considerably less than what he is bringing home as a sole trader.

I have several key concerns with this scenario but I would like to help my dad out, so I have broken this down in to several key questions. The first two questions I am after some advice on here are: if I become a director of a ltd. company and employ my dad, when he gets a divorce and his finances are looked into,

1) is this legal?

2) what are the legal consequences for me if this scenario is found out?

I have plenty of other questions about where I should go to get support in setting up this scenario, as my dad has a history of doing some questionable things with his past businesses (hence the prison sentence). But ultimately, if this is illegal, or if this scenario is found out during a divorce and I am personally at risk for "A, B, C" then the remaining questions are irrelevant as I cannot afford to get involved.