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What happens if husband & wife both own company but they get divorced?

(3 Posts)
LanaLily11 Sun 21-Oct-18 18:50:33

My brother works for a small company owned by both husband and wife. They are in the early stages of divorce and he’s not quite sure where he stands! What usually happens in this scenario? Both parties are equally keen to get full ownership of the company but neither are willing to be business partners or be amicable?

OP’s posts: |
LizzieBennettDarcy Sun 21-Oct-18 18:51:58

One buys the other out, or they sell it.

Never usually ends well, tbh.

Seniorschoolmum Sun 21-Oct-18 19:02:51

If they jointly own a business and it’s a ltd company then they will each have shares. Each can offer to buy the other’s shares. If one has a majority shareholding, that person could decide to liquidate the business, distribute the money according to the percentage of shares and then start up on their own. It can get complicated to say the least.
Your brother’s contract should give notice terms which is the worst case scenario. He must stay absolutely neutral in the meantime, until he knows who will be his future boss.

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