the dreaded D word....

[FatLazyContractor]

As MF would say, who was cheating on whom?

[TykeMerc]

If you form a new company prior to the divorce isn't there a very real chance that your wife can claim a 50% shareholding? She currently has a 50% share in your existing one so there's an unavoidable precedent.

[BrilloPad]

Hi folks,
Am about to venture down the road to divorce and am just looking for any advice on what to do from a contracting/company perspective. Currently the STBX is a 50% shareholder of my limited company. I want to do things amicably, but ideally don't want to keep her involved in my business affairs post-divorce. Any advice/contacts etc. would be greatly appreciated.

cheers,
b

Are there any kids? Is anyone else involved? How long was the marriage? What assets were bought into the marriage? What assets are there now? What sort of discuss have you had on financial split so far? Are lawyers involved?

You certainly need to get the limited closed and open a new one.

[Lifelongontractor]

Advice from a divorcee

I'm sorry to hear that you are going through this. I did not long ago, and the following is based on my experience. Like you, I had long retired my ex-wife, and had two nursery-age children.

Unluckily for me, most of my equity was in our primary residence, which I was still OK with leaving her and the children in. Money can be replaced. Luckily, she was never part of my company.

Though all the right noises were made about amicable separation, the truth is (worsened if you're the one who instigated divorce) matters can quickly deteriorate and become about retribution. Sadly, the law is still very wife/mother biased (though this is very slowly changing).

As Gables says, definitely start a new company ASAP. Whether the divorce is amicable or not, you will need to start thinking of life and finances as a single person, and to that end, create new bank accounts, move mortgages / bills if any are joint.

Where young children are concerned, the law still sees mums as deserving and fathers a providers. You can quickly lose all your equity on lawyers fees arguing the toss over this and that. Consult an expert but do not engage lawyers. Think about what you consider a fair financial settlement, and then the maximum you'd be willing to give up. Be honest and generous. Aim for the fair split, but ultimately be prepared to be pay the maximum to achieve a "clean break" (if she gave up her career to raise the kids, or even if she has not, she will be entitled to spousal support. A "clean break" is a capital amount payable now but means she has no further claim on your income/asset regardless of her future situation).

Make central to any discussions plans for the kids and contact arrangements. This too can become a weapon and lead straight back to court when you though you were done

What others have said is true regarding lawyers and friends will be advising her about the maximum she can get (inc about contact) and showing it to be eminently reasonable.

I wish you an amicable, but at least speedy, divorce

[DimPrawn]

I'm sorry to hear this and I do hope it's amicable, mine started that way (just completed) but ended up very un-amicable, it's not just lawyers, she'll have friends who will say 'you can go after x y and z...'

.

^ This.

They speak to friends who give them horror stories of men running off with all the money, they then speak to a divorce solicitor, suggested by friends, who is usually a spiteful money grabbing woman, who convinces the once amicable wife/ex-wife that the best form of defence is attack everything and try to grab everything in a long court battle.

Of course at the end, both you and the ex-wife are broke and the lawyer is off to buy another luxury villa somewhere warm with a low tax regime.

Best of luck.

PS for those comtemplating marriage and splitting the company shares, don't be an idiot.

HTH BIDI

[vetran]

Sorry to hear that, I suggest you get everything you can done while its still amicable.

Pheonix legislation is about insolvency

http://researchbriefings.files.parli...83/SN04083.pdf

seems no reason not to close the company tidily.

I would suggest to her that it gives her closure and allows you to pay tax up to date before the lawyers & friends get confused about what is hers and what is the taxmans.

You can sell it as protecting her because if she remains as a director / company secretary she is liable as well. You could just chuck it all in and move to Thailand leaving her with a massive tax bill.

[TheFaQQer]

Sorry to hear that, I suggest you get everything you can done while its still amicable.

Pheonix legislation is about insolvency

http://researchbriefings.files.parli...83/SN04083.pdf

seems no reason not to close the company tidily.

You're unlikely to get ER if you are going to set up another company to do the same thing though.

[BrilloPad]

They speak to friends who give them horror stories of men running off with all the money, they then speak to a divorce solicitor, suggested by friends, who is usually a spiteful money grabbing woman, who convinces the once amicable wife/ex-wife that the best form of defence is attack everything and try to grab everything in a long court battle.

I disagree. All lawyers are spiteful and money grabbing. Man or woman.

HTH BISDI

[BrilloPad]

You're unlikely to get ER if you are going to set up another company to do the same thing though.

What is ER?

[vetran]

You're unlikely to get ER if you are going to set up another company to do the same thing though.

depends how much is in the company if this is important. But good point.


The precedent of her being company secretary is because she was obviously helping run the company which is why you paid her. After the divorce she is unlikely to continue otherwise both of you will have to pay more tax.

Now if you want to resign as director on the existing company and give it to her you can, so long as you make sure to remove any underwriting you might have done to company bank accounts.

personally it makes sense to close the company neatly and start afresh.