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AIBU?

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Original poster

To feel this is a shitty deal?

34 replies

coalwife · 13/04/2018 06:54

A very quick review of back story. Been together 8 years and we have 2 son's. I run a small.business advisory business. Enough to keep me working full time. Partner is a solicitor. We have just joined forces and are about to open a limited company. Now I get that he is bringing more money to the company from the outset. However his proposal is a 80/20 split. Aibu to think that given our relationship that this should be 50/50? I'm hoping to discuss this today. Looking advice on if I'm being unreasonable first.

OP posts:
Dozer · 13/04/2018 06:57

Not enough info. What kind of company, how much money.

Will you both be doing this in addition to your other job/business, or working FT on it?

Who owns your home?

ElsieMay123 · 13/04/2018 07:00

It sounds crap but what is his justification? What will you both contribute short term and long term? If you're a couple what is the significance or risk? Wouldn't you benefit equally ultimately anyway so why the need for an unbalanced split?

monkeysox · 13/04/2018 07:01

Family business. You are a family. Family money.
50 50 into.joint pot and save some tax too.

LifeBeginsAtGin · 13/04/2018 07:15

What are the childcare arrangements if a child is ill?

trojanpony · 13/04/2018 07:43

80/20 is arguable but still a shit deal for you if he works full time (40 hours) and you do 10hours (as in actually 10 not “10 but really closer to 30”)

Otherwise it’s a load of old shit.

trojanpony · 13/04/2018 07:44

Also tax wise this propsal isn’t as favourable either

Idontdowindows · 13/04/2018 07:50

The only advice I can give you is not to start a company with your partner if you are already not happy with the proposed split.

antiAlias · 13/04/2018 07:52

This a business. If his expertise and money are worth the 80/20 split then why should he get less.

In a sex / role reversal, you'd be told to not undervalue yourself and to make sure you 'protect' your assets. I don't see why this should be different because he's a man.

Bumpitybumper · 13/04/2018 07:54

It sounds like you're both viewing this business slightly differently.

Your partner seems to be viewing it purely from a financial/business perspective so is looking to split the company shares as he would with anybody else with your skills etc. You are looking at it from the perspective that this is joint enterprise you are undertaking as a family and as such should both get equal shares.

I think you need to have a conversation with your DP about the motivation for setting this company up and what split would be fair. I have to say though that if he won't change his mind and you decided to proceed with the company anyway, 80/20 split sounds quite extreme. If you're working FT does he currently earn 4x as much?

Pengggwn · 13/04/2018 07:55

Is he bringing more in terms of his initial investment, or is he expected to bring in 80% of fees?

Get legal advice, pronto.

What's the long-term outlook? I would be extremely cautious of someone who took this view of money when we had two children together.

NewYearNewMe18 · 13/04/2018 07:57

Sorry but just because you are bed mates, that does not transition into a business deal. You don't see Dragons Den going 50/50 - they want the lions share because they are putting up the capital.

Nikephorus · 13/04/2018 08:01

Any money you bring in will be a loan to the business and hence repayable by the company when funds allow to the one who lent it. It should only affect shareholdings if it's unlikely to be repaid for ages (and then I'd rethink the business plan!) The share split needs to reflect the amount of time and effort you'll each be putting in. If he's doing 4 times the work of you then 80-20 is reasonable. If you're working the same then 50-50 etc.

Pengggwn · 13/04/2018 08:14

NewYearNewMe18

No dragon ever gets more than 30% of a business on DD! Capital isn't everything.

Juells · 13/04/2018 08:14

TBH I'd forget all about it. If you're working full time, find another solicitor to team up with. An 80/20 split with a stranger it will feel different.

I wouldn't under any circumstances enter into a business arrangement with a partner, you're not married to him, you have two children, if you split up your business is tied to him under a deal you don't think is fair.

Find someone else to go into a business partnership with would be my advice, and look for a better deal.

Dadstheworld · 13/04/2018 09:03

Surely it depends on the value of both businesses?

Raver84 · 13/04/2018 09:05

Why are you splitting things when you are a family with 2 children. Really odd.

Juells · 13/04/2018 09:08

I'm sure he's being perfectly reasonable, but I still wouldn't get involved. If they ever split up the OP will be in a vulnerable position if her career amounts to playing a minor role in her partner's business. That's what this arrangement is.

Juells · 13/04/2018 09:09

At the moment she has her own business. If this goes ahead, *he'll have her own business.

Veterinari · 13/04/2018 09:12

Is your DH able to do 80% of the work/provide 80% finance because of your support at home? If so then I think you need a discussion around how your work with you family supports his ability to develop professionally

patstar · 13/04/2018 09:14

If you are becoming a limited company then your accountants would suggest 50/50. You would both be directors of the company and would each start with one share (normally valued at £1.00)

HSMMaCM · 13/04/2018 09:18

Check it is a tax efficient way to do it.

Check if it is a true reflection of the business. Both now and projected into the future.

Check his 80 and your 20 get paid into a family pot, which is then split 50/50 with both of you having equal spending money.

BitOutOfPractice · 13/04/2018 09:24

Also, are you married. Do you have joint finances?

LannieDuck · 13/04/2018 09:29

I think he's treating it like a business discussion. He feels his side of the business is worth slightly more, but he's pitching high in anticipation of compromise. He probably expects you to suggest 60:40.

SingleAgainThen · 13/04/2018 09:31

Speak to your accountant to see if they agree it’s not fair.

Hoppinggreen · 13/04/2018 09:33

DH joined my business and I gave him 50% of my shares
He now earns 90% of the income but we still have 50/50
However, we didnt have to invest to startup if that makes a difference

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