How is a limited company divided at divorce?

[industrial]

He started the company while we were married. Together 20 years.

He has valued the company as 'nil' on firm e. There are capital and reserves of over £300k in the accounts.

There is also machinery, vehicles etc.

Do I get half the capital / reserves (subject to it being divided 50/50) or half the value of the company?

I do have a solicitor but she is away this week so I'm trying to make sense of it.

Sorry I'm a bit lost now. Are the detailed accounts (not the balance sheet) available to me during the divorce process through any means? Thank you for replying.

Any valuation of the company must be substantiated with evidence. Ask your solicitor for guidance but details of the company shouldn’t be withheld from you. If he says it’s value is £0 he has to prove it.

Full accounts should be disclosed during he discovery process. If they're not, you apply to court and the court ill make him supply full accounts.

Thank you both. Does that include expenses?

It includes profit and loss, if that's what you mean by expenses.

The limited company valuation will have two components - it's net assets (i.e. total assets (bank, equipment, money owed) less total liabilities (loans, taxes, money owed), AND potential future earnings. The former is easy - straight off the accounts. The latter is the problem as it's akin to his future earnings as if he was an employee as it's a one man company which has no earnings if he doesn't do the work - i.e. effectively a nil value. Not much different to anyone who chooses to go part time or give up work completely in advance of a divorce/separation to reduce future earning potential. The asset value of the company will be taken into the melting pot along with other marital assets, such as house, savings, pensions, etc etc.

@user1497207191

@user1497207191 sorry posted too soon. Thank you for replying.

Does that mean there is still value in the company even though it's not making money? There's £200k in the bank, and it has no debts. If that's the case would this money been seen as an asset and therefore 'in the pot' to be split?

I've just found out he spent all his savings. He claims on home improvements (erm I live here, he hasn't). What can I do about this does anyone know?

Thank you

@Collaborate to be honest I'm just curious to see what he has spent in his dubious expenses. Where he has been etc.

Just hoping someone can reply x

There may be value in the company even though it isn't making any money but no-one can give you a definitive answer on that.

If he has spent all his savings and can't show where the money went you may be entitled to a larger share of the assets but you really need to take advice from your solicitor on this.

You have no right to see what he has spent his money on or where he has been. You may be interested in that but, unless it is directly relevant to the financial settlement, the court won't be.