Divorce with business

[Toothicktounderstand]

Hi all. I know you can’t give me legal advice and I need to see a solicitor…but can you help me understand something?

If I am a 50% shareholder with the husband of a business worth (only if sold) 450k and a house of 400k (100k equity). How can stuff be split? I don’t get how he could buy me out of a business which only has money if sold (client based). I wouldn’t want him to sell it.

Equally I’ve supported him and helped set it up so I don’t want to walk away without talking to a solicitor?

How could that work? Or do I have to walk away. He is saying he cannot give me anything and for 12 years I’ve been a stay at home mum just returned back to full time work.

Are there other assets that have cab use to offset the value of the business? Could he in theory give you the house and the value of his pension? Would that cover the amount (£275).

As you were a sahm you maybe entitled to more then 50%.

Is the business based on more then his skills? Does it have assets? Can it be moved? Is there a chance that DH can simply close that business and set up a new one doing the same? Beware of these tactics.

Two examples from my life. My parents divorced and mum was granted 50% of the value of dad's business. Dad wasn't in a position to buy her out (amount owed was over 200k) so the court said he had to give it to her within a certain time period or sell up. She also got the whole marital home to offset some of the value.

Second example. Boss (stupidly) gave 20% of his business stocks to his affair partner to avoid tax. Shockingly she went off and had another affair, boss broke up with her, then when she demanded the value of her asset boss and his codirector (who was furious with boss) had to find the money to pay her off, nearly bankrupting the company.

Thanks @Cerialkiller I was a stay at home mum, but now returned to work in a lower position than I was beforehand. Returned 4 weeks ago. No assets as he is the skills. I’d not thought of pension pots. I couldn’t afford the mortgage on my wages alone. We are mid 50s. Thank you for sharing.

As you are demonstrably worse off after your time as a sahm, you have a very clear case that you were disadvantaged to your DH benefit and therefore should push for a bigger slice of assets 60% plus.

The real problem is how much the courts will accept as DH income/company value.

Can you get together any paperwork about the businesses income? If it's just DH with a company value of 450k then it must be making a considerable sum. Beware that ex might start drawing minimum income (if he isn't already) in order to minimise maintenance and how much of the shared assets you get

As a shared holder you should be able to demand a general meeting where income/profits must be shown. I believe you are legally privy to this as a shareholder, he can't hide this from you.

I don't know how to protect yourself in the case if him simply shutting down the business and starting afresh. I would certainly attempt a clean break rather then asking for portions of profit as a shareholder for this reason.

One question to ask now. Are you recieving your share of dividends? If you are currently separated, is withholding your income from the company?

Is it the kind of company that can just change names and carry on?

It might be a good idea to speak to a business lawyer about your rights here.

Do you know what his income is? If he is a very high earner compared to you, you may be due spousal maintenance but I understand this is hard to get, would be for a period of time following devorce and a decent clean break would like be preferable if you can get enough to survive on.

Will you be primary carer for the children or will it be 50/50. If he is a high earner then 50/50 doesn't necessary mean no maintenance is due. Him being self employed can cause issues with this so if possible I would try to tie down a maintenance amount in court if you end up there. Again this is why the business finances will be very useful to have.