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AIBU?

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Original poster

to think I should have 50%?

55 replies

notfornothing · 08/06/2016 12:12

Trying to keep it short.
We are selling our property to invest in a business and possibly buy a cheaper family home.
We are married and own this property together, there is good equity in it. DH bought it before we met so it was his, when we got married it became ours.
Part of the sale money is supposed to be invested in a business, DH says according to the rules the wife (me) can own 25% of the business.
Aibu to think I should own 50%?
Other part will go to buying a family home (deposit only) and a assume we will own that jointly.

OP posts:
AdjustableWench · 08/06/2016 13:20

Yeah, I'd want to see the rules too.
And then I'd want a solicitor's advice.

Original poster
notfornothing · 08/06/2016 13:25

On one hand i feel it should be 50-50 as the money comes from the sale of our home and I want to be secure just in case...
On the other hand can i really ask for half if i am sahm, he will be doing all the work AND he had the property before me anyway...
I'm not sure what to think.
It is nagging me though

OP posts:
PaperdollCartoon · 08/06/2016 14:15

I can't think what 'rules' of anything would say the wife can only own 25% of a business?

AnchorDownDeepBreath · 08/06/2016 14:19

Ask to see the paperwork from the franchise. Then you can read it yourself and fully understand what you are getting into and what rules apply. He could have misinterpreted or he could be right.

Cleo22 · 08/06/2016 14:37

I can think of no reason why the franchisor would have a rule like that. Ask to see the paperwork. If it is correct it is very odd.

PumpPumpUpTheJam · 08/06/2016 15:01

he will be doing all the work AND he had the property before me anyway...

NO. You will be doing all the work in the house while he is out. Same as now. Family money. You don't lost out because he owns it now.

13 years of owning the house while you work/look after kids counts. He might have owned it originally but you would have bought something together eventually if he hadn't already owned something.

Also prices have gone up massively in that time.

dowhatnow · 08/06/2016 15:55

Ask to see The Rules.

InanimateCarbonRod · 08/06/2016 15:57

Myself and DH own a company. 50% each.

InanimateCarbonRod · 08/06/2016 15:58

Meant to add that I'm in a full time job which I choose to do. DH runs the company because I've no interest in being in that line of business. It's bullshit!

HereIAm20 · 08/06/2016 16:02

He's lying.

HelloHola · 08/06/2016 16:22

If we are married aren't any businesses started during marriage automatically both of ours?
He will be doing the majority of the work in the business.

I don't understand this sense of entitlement that comes with marriage - if he's doing the majority of the work, then surely he should get a bigger cut of the business? At the end of the day, he'll probably end up spending that on the family anyway.

It makes it sound like you'd be scared you'd be left with nothing if you ever got divorced. If that's the case, then you need to go out and do something of your own and have your own income.

Me and my DP do not have joint accounts and as long as we both pay half of the bills each, then I'm happy.

The rules sound a bit odd, but it does sound like something a franchise would do. I know you have put money towards the old mortgage though, so you should get that 25% cut - not sure about more though, as you hadn't put in equal parts to the old house.

A different story for this new house though.

TreadSoftlyOnMyDreams · 08/06/2016 16:33

How big is the deposit on the new home that you will buy? % terms? If you split up could you conceivably service the mortgage on your own / from spousal maintenance?
I'd be really worried about sinking all my family assets into a new business. If it's a good business model it shouldn't be necessary

BoGrainger · 08/06/2016 16:41

Instead of owning your new house as joint tenants I would split it 75/25% in your favour.

Original poster
notfornothing · 08/06/2016 16:44

I would love to go out and do something for myself as a pp suggested but right now staying at home with a baby and pre schooler, that was a joint decision, to enable DH to focus on his job.
I do about 99% of childcare and housework but they are still both of our kids, I'm not reducing DH share to 25% because he doesn't do as much

OP posts:
Original poster
notfornothing · 08/06/2016 16:46

I will try to find out about those rules exactly

OP posts:
AStreetcarNamedBob · 08/06/2016 16:53

I have quite a few limited companies and I'm also an accountant.

He is lying.

You need to see "the rules"

And then question why he would lie to you

SquinkiesRule · 08/06/2016 16:59

What other rules has he invented?
I think he may have been reading the franchise rules and misinterpreted something in them.

andintothefire · 08/06/2016 17:01

I may be wrong, but it sounds to me as though the rules are part of the franchise contract - ie the main franchisee is entitled to put 25% of the shares in his or her spouse's name. There may be good reasons why the person granting the franchise licence wants the franchisee to have 75% of the shares. In particular, a 75% shareholding gives you legal control of the company and ensures that there is no deadlock in voting (if for example you and your husband disagreed about something he would be able to vote it through).

However, check the contract to see if there is any limit on the beneficial as opposed to legal ownership. There may be a solution that involves your husband making a declaration of trust that he holds one third of his shares on trust for you as beneficial owner - that would have the effect that you have a beneficial interest in 50% of the shares overall (including entitlement to 50% of any dividends and proceeds on sale).

Original poster
notfornothing · 08/06/2016 17:04

Thanks intothefire
Will keep that in mind

OP posts:
LizzieMacQueen · 08/06/2016 17:05

You should split your contribution into equity (to make the 25%) and loan (the balance). Your loan would be unsecured but that may be a more sensible approach to take.

What sort of amounts are you talking about?

Therealloislane · 08/06/2016 17:08

If it's a franchise can you own it?

I bought a licence for a franchise. It was in my name only, it couldn't be in two names. Dh put up the money for the licence & came along & helped out on occasion but as far as the business went, it was solely mine.

He got the licence fee back (it came from our savings) plus holidays & a good quality of life until I had enough & quit the role.

Probably different as it was a slimming group franchise so only one person needed - is your franchise remotely similar?

EweAreHere · 08/06/2016 17:12

Ask to be owner of 75% of the value of the new house in exchange?

clarrrp · 08/06/2016 17:14

Yeah, I'd want to see the rules too.
And then I'd want a solicitor's advice.

This.

Buying a franchise is different from setting up your own business from scratch. The owners of the franchise can set certain regualtions in the contract - for example stipulating that the owner of the franchise cannot have other business interests and detailing the period of time before the franchise owner can expand / buy another franchise, and very detailed in terms of funding - such as a certain percentage has to be unencumbered funds - ie. not a loan. So that contract needs to be looked at carefully.

Personally I think you are being unreasonable wanting 25% when you won't actually be doing anything to earn it.

Before going into this venture I would also sit down with a solicitor and go through EXACTLY how much you have both invested in your current property and where that money is now going to go regarding a new business and property and make sure you have an agreement or contract between you and your hubby - just because you are married now you can't make assumptions for the future and should you split up you need to know now where you will stand, and should the business go belly up what you are liable for etc.

Get the full terms and have your solicitor go through them with you.

LonnyVonnyWilsonFrickett · 08/06/2016 17:20

I think you need a copy of the franchise agreement and then you need an independent solicitor to go through the implications of the agreement wrt your long-term future.

DH doesn't own even 1% of my business - it's my business FGS! But of course every penny I make in profit/wages is family money. But the actual day-to-day doings of my business is completely separate. I don't see anything wrong in that - but I didn't have any start-up costs. You are different because you are using a shared asset to purchase the franchise, so you need to protect that.

Franchise agreements are rarely biased to the 'side' of the franchisee - if you're husband is woolly about ANY of the details he needs to press pause and get some independent advice.

clarrrp · 08/06/2016 17:21

Franchise agreements are rarely biased to the 'side' of the franchisee - if you're husband is woolly about ANY of the details he needs to press pause and get some independent advice.

This.

And never forget that this is a business agreement.

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