Ex is threatening to fold business

[giantnannyknickers]

Hi there I need some advice, I'm self representing in a family settlement matter. My ex and I ran a business together; he is director, we are both 50% share holders. He purchased two properties in Ireland using a 'loan' from the business and my share of the profits.

We are currently in the process of getting the business valued so we can sort out a financial settlement.

Today I got an email stating "We are getting the valuation done for nothing because as I told you I’m not going to buy you out"

I don't know what my options are, I'm scared he will fold the business and our employees will lose their jobs. I'm scared I won't get any financial settlement. He submitted substandard documents for the valuer. He has tampered with the layout of the website so that it's not as easy to navigate. He has not declared any cash sales which I knew would be the case anyways.

His girlfriend has also started referring to it as "our" business so I'm scared she will seek a legal claim in it too. Although they haven't been going out two years yet.

Just wondering if anyone else has had the same experience? And how they managed it. I'm
Not sleeping at night and I'm very stressed.

You need to get a solicitor to help you. Good luck.

I am not legal, but seems odd that your ex would be able to fold the business by himself if you are both equal 50% shareholders?

Keep an eye on Companies House and whether he set up another business. In his position, he might be tempted to run your business into the ground, whilst transitioning customers to another 'we've had a rebrand'.
I think you need to invest in a solicitor (the right type) asap, or first speak to the company's accountant.

Am I being thick here won't you have a claim against the houses?

You need to pay for proper advice on this

So he has created a new business but he's subsequently transferred that entity into his girlfriends name.

I can't get legal aid as I can't afford it. I've just given birth 7 months ago to our second baby so currently not working. He gives me child support weekly but it's no where near enough to cover legal costs. I also don't qualify for free legal aid as it's a commercial business which comes under commercial law.

@abbsisspartacus yes so I have applied for my share of the houses but we also need to know the value of the business so that I can get the total value of the
Property pool (which is all assets including the houses and business) to distribute between us

@BritInUS1 I've already spend 30k of my dads money on legal advice. Have been quoted 70k to continue. We don't have that kind of money

Don’t spend any more money with solicitors fighting your ex. I would suggest, although I’m not familiar with Iris law, that you have an Irish solicitor out a charge for you on the properties in Ireland. If successful this would mean your ex could not sell without your consent.

@user1457017537 oh god I'm sooo far in over my head it's crazy. It's so isolating doing this without support.

You can have a notice placed on the land registry in ireland preventing the sale of the properties without your consent. This is easy to do and would also be a good bargaining tool for you. Do it without telling him until afterwards though. It explains how to do this here. You are looking at no 6. www.prai.ie

Sorry link fail. No 6 in cautions and inhibitions.

Giantnannyknickers do what Jon65 says as soon as you can. Don’t delay it will give you some control of the situation and massively help you. Best wishes

IME cases that have a costs estimate of £100k are far from straightforward. They are complicated and very involved. It is a folly for you to try and distill it in to a few paragraphs on here in the hope that you can take something meaningful. By all means come here for moral support, but be very aware of the limitations of advice given here.

@Jon65 can I do that if I'm
Not the registered owner? He purchased them in his sole name using joint funds.

@Collaborate it's not folly it's called desperation; I would love to have legal support. I can't afford it. Not do I quality for free legal aid as the business is classed under commercial law. So you see my ex holds the business and the money and the houses. And I'm trying to self represent the best I can so I can get a fair settlement for both of us and the kids. I don't want the business to be folded and people to lose their jobs. I'm scared and stressed. I've exhausted very avenue of support available to me.
Women in my position are extremely vulnerable. I didn't have the wherewithal to have escape funds set aside. I didn't know he would become so financially abusive.

If you read it, it tells you.

@Jon65 thanks it's not working on my phone so I will check it on my computer later. Really appreciate the help

Been similar situation for 3 years now, make sure you have all the bank statements and paperwork for everything, when you eventually get to court they will see the evidence, I too did not expect the financial abuse I have had. Best of luck, ps if you can try to get a loan for a barrister in court that would help if you have anyone you could borrow that of ..

I've screen shooted everything, have copies off all bank statements before I was frozen out. I've even got screen shots of big money transfers he's made to the girlfriend who is a "subcontractor" on the last day of the financial year.

To be honest with you he was worn down the business so much I'm not sure it would warrant me getting a loan out to pay a barrister. My old lawyers were excellent and literally helped me through everything so I'm really missing their support. It's so hard to judge how it will go. I just need the business valued first to know if all this stress has been worth it. Ex has told me either way he is not buying me out

@Julcol I hope you got a fair settlement at the end of everything?

Well if he's not busing you out eh you onto you take over the running given that it's 50/50 ownership and buy him out if according to him it's not worth much?

@RedHelenB I'm hoping to relocate back to Ireland with the kids. The relocation has already been approved by the courts.

I would love to run it if I was staying here, I think I'd be very good at it. I could possibly try find another buyer for my half and see if that's an option.

His new partner might be interested as she already thinks the business is hers; so might chance my arm and ask her if she wants to buy my share.

Is that too cheeky?

Nope you do what's best for you and the kids.

If possible get some kind of charge registered in Ireland over the two properties there as they may be the hardest things for him to make disappear. Also if he is taking cash out of the business or clients into a new one which diminishes the value of your half of the shares then that could be what is known in England as a fraud on the other shareholder/ unfair prejudice and you may be able to stop it. You need to work out how much money is at stake however and yo have already spent £30k on legal fees and make sure you do not rack up more costs than you might be going to recover.

Eg if putting both Irish properties in your name and he keeps the company and just pays child support is that one way to resolve it which is reasonably fair? It sounds difficult. i was working full time with a 7 month old by the way so don't assume you couldn't get a full time job which might help the money side a bit either here or in Ireland.

@Xenia thank you for replying. That would be the ideal situation that I get both properties and he retain the business.

I have considered taking action against him through the courts to suggest no confidence in him as a director but to be honest with you I'm shattered and broken from this whole process.

The only aspect of this which would be a massive concern for me is that he hopes to return to Ireland with us, which will mean he will fold the business and put 7 employees out of full time employment. Morally I just find this so wrong.

I am hoping to go back to work when I return to Ireland. My littlest will be 9 months by then. Brexit is a major concern at the moment and how it will effect house prices and employment in Ireland. So economically it's a really bad time to be doing any of this.

It sounds awful. If he might fold the business you could instead offer to sell it for you and him as you own half the shares each as seeing what soemone else will pay tends (as with a house) to show that it is really worth; whereas some businesses - like my father's when he died in that case one person (him) , very linked to him - basically have no value.