Joint business - where to start?

[PinkSkittles]

I’ve been pointed here by the ladies on relationships as it’s increasingly likely my husband and I are going to split. Aside from the emotional stuff, the whole financial prospect is terrifying me.

We have a business we are both directors of. Where do we even start on getting me out of that, what am I entitled to? Is it sensible to do so while kids are still going through uni (we are paying accommodation and food) or better to carry on so that’s not affected? The business will likely bring in the same without me but hubby obviously can’t withdraw as much hence how it could affect kids uni.

and then there’s the house. I’m absolutely gutted to be losing it, I love it so much. It’s my home. I don’t technically have an income (well I do from business but it just all goes to one pot) so no way I can buy him out. I expect he could afford to buy me out but I need to get visibility on recent accounts after the festive season to know what’s what, I stupidly leave that to him as he knows what’s what. Which is best? Sell and payback mortgage then split the rest would leave me with less in hand than if he bought be out right? As I’d get half market value?

my head is all over the place, I really don’t want to split up at all but feel I need to be prepared

The business will need to be valued. I’m going to assume you both own it and draw salaries. Is the business a consultancy or professional service. If so it may not hold a lot in assets, other than reserves. He may not want to be in business with you in the future and may wind up the company and go on his own. You will get a share of the value of the company.

The house is also an asset to be split. You are going to need to buy him out or it will be sold and you each get a share. With adult children and both doing a director role I assume the split will be 50:50. The same will apply to pensions and other savings.

You can both contribute to your childrens education you don’t need to be together for that. But when you split you might have less you can afford to give. Adult children at university don’t get any legal consideration in a divorce. If you want to agree something you will need his agreement and cooperation.

Do you have an accountant? If you are joint business owners, find out who the accountant is, make an appointment with them and take a list of questions with you. They are obliged to discuss and advise you as you are a director. Just go in card on the table, explaining your husband has managed the day to day finances but that you want to get a better handle on things. You can explain the reason why. The should not proactively tell your husband about the appointment with you, but they may tell him if he were to ask them.
Ask questions about the shareholder split (is it 50/50?), what the profits have been for the last 2-3 years, what the dividend payment has been over the last 3 years, what bank accounts they are aware of. Ask what your options are re: him buying you out of the business, getting the business valued. You do not have to resign as a director-he could ask you to and you can agree with conditions, e.g. you want 60/40 split of the assets.The business could be sold but only with your permission as a director. Do not resign as a director or do anything until you have spoken to the accountant and a divorce solicitor. Good luck.