Who should get more % out of a sale of business, the one who physically built it or the one who actually made it a business?

[Terribleluck]

Without getting into too much detail, 20 years ago by DF buggered off and left my DM in charge of the family business. They're still not divorced, but that's by the by. My DF needs some money now, and he has three properties at his disposal, the family business, another semi failed business, and my grandfather's business. My DF decided to put that semi failed business in his concubine's name (as mentioned my parents are only married because they could never agree how to divide their assets), the pont is my DF claims he can't sell that business. His father's business (my grandpa's) is co-owned with my two aunties so not that simple... And the family business which is my DMs main source of income... So my DSis is now saying that the family business has to be sold and old proceedings should go to my DF. I completely refuse as I think at the very least half is our DMs, and of need the money so desperately he can go and sell that property in his concubine/partner whatever you want to call her name. My DSis claims the family business isn't my DMs at all, but I do think she's very, very wrong.

Who actually owns it? Is it a ltd or a sole trader company? Who owns the shares?

I actually own it, but obviously isn't mine, but I do need to sign off the ownership.

And that's why I've said I'm not going to sign anything until I think it's fair for both of them.

Consider getting a valuer to advise and come up with a fair split and follow that. If you are selling the business, I suggest you start from a 50/50 split had the business been sold when your father stopped being involved and then any value add since then is your mother's.

That seems like a very good suggestion @goodcat. If my sister accepts it's fair or not, that's a completely different matter!

You need to do this in the context of a financial settlement because there are lots of factors to take into account to decide what's fair - far more than just who started the business or who's worked in it. Family lawyers would look at how your mum can support herself if the business is sold as well as whether it was wrong of your dad to transfer the other business - and lots of other things.

If you are looking for fairness for your mum you need to take her to see a family law solicitor (who is experienced in dealing with businesses).

Great points @elbie thank you. I do think lawyering up seems like a good plan.

No one seems to have any regard for the legal structures and ownership.

It isn’t ‘by the by’ that they are not divorced. In a divorce the financial settlement would give your Mum a fair share of the business, the properties etc.

If you own the family business, you own it.

Is your Mum a Director? Does she own shares?

Everything needs sorting out properly and legally.

And no, don’t sell the business from under your Mum’s feet. Why would you?

Tell her to get a lawyer, get the assets divided legally, and divorce!