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Leaving jointly owned business after split

(12 Posts)
Jolene80 Thu 11-Jun-15 12:01:19

Advice needed please, separated from husband 8 months ago. Thought I could continue to work together at our jointly owned business but can't as its killing me mentally. Business has £140k turnover, £15k debt, some stock. He is offering me £5k to be out of the business completely.
Is this an acceptable amount.
Any thoughts?

babybarrister Thu 11-Jun-15 13:12:57

Message withdrawn at poster's request.

Lonecatwithkitten Thu 11-Jun-15 13:14:07

Turnover is not the important figure, profit is what you need to know for value.

Collaborate Thu 11-Jun-15 14:25:51

Turnover is not the important figure, profit is what you need to know for value.

Not necessarily. There are plenty of ways to value a business. Which way is best depends on a number of factors.

I entirely agree with BB. Sort it out as part of a divorce.

QuiteLikely5 Thu 11-Jun-15 14:28:36

I disagree with others. You need to get the business valued by an appropriate organisation and go from there.

DO NOT accept 5k.

If you are desperate to get away keep a stake in it as a sleeping partner or something.

LotusLight Thu 11-Jun-15 21:08:28

What are the profits? £140k turnover with zero profits is probably worth zilch. £140k turnover with £120k profits is worth more.

babybarrister Thu 11-Jun-15 21:55:27

Message withdrawn at poster's request.

LotusLight Fri 12-Jun-15 08:12:03

In fact some couples keep their shares and share a company although I am not saying that is easy to work out.

Jolene80 Fri 12-Jun-15 10:39:06

Thank you all so much for the advice, gross profit £85k, net £15k,
we're having mediation in the next couple of weeks, is this something they can help with.
I am pretty sure I want the clean break as I think eventually he will go bankrupt (as not really great on the business side of things) dragging me with him, but his dad has helped him out financially when needed before and he would be borrowing from him to pay me.

tracyreader Fri 12-Jun-15 12:05:20

If you think he might go bankrupt, you might be liable as a director of the business (IANAL). I think legal advice is even more important in this case as you don't want to get sued by his creditors.

Jolene80 Fri 12-Jun-15 13:55:27

thank you tracyreader, I don't think its imminent but could eventually be a possibility. He's always teetering on the edge :/

LotusLight Fri 12-Jun-15 15:01:25

It doesn't sound like it's worth very much to be honest with £15k net profit which is about the minimum wage although he might have a £50k salary out of the gross profit on top of that I suppose.

I certainly support clean breaks. I paid a small fortune to buy one from my ex on our divorce. The psychologically each can go their separate ways.

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