Divorce and Wife Company Shareholder

**northernladuk** · 15 June 2014, 01:03

This is mentioned in this article on accountingweb...

http://m.accountingweb.co.uk/anyansw...d-wife-company

You could of course agree an amount of money she is entitled to and she resigns as a director. Would have to be a very amicable divorce for that to have a chance.

There are quite a few threads on divorce so would suggest you try a search to read other people's experience.

**Scruff** · 15 June 2014, 08:46

She could probably get you under the Phoenix Principle...

**Clare@InTouch** · 16 June 2014, 07:37

If you're still married then presumably she could be entitled to half the assets in the new company regardless. Maybe think about going brolly until the divorce is through, then set up a new company.

I can't see a problem from a phoenix point of view unless you're gaining a tax advantage by closing and then restarting.

**Mojito** · 16 June 2014, 08:18

KISS principles

Originally posted by Clare@InTouch View Post

Maybe think about going brolly until the divorce is through, then set up a new company.

I'd agree with this, it creates a very clear path from days worked on your timesheet to the amount you get paid on a reputable brolly's payslip. Solicitors, Barristers & judges (hopefully you avoid the dreaded FDR) will understand this and any settlement will be worked out on this basis. Understanding the workings of a Ltd with ££ carried forward from the previous year, dividends etc might be bread & butter for us but is not as black & white as PAYE and your opposing legal time would undoubtedly play on this. Keep It Simple would be my steer.

On the advice of my divorce solicitor I did this and saved myself a world of pain (and a stack of ££) if anecdotes from other contractors that have been down the divorce route are anything to go by. FWIW I found ContractorUmbrella offered a very efficient service.

**speling bee** · 16 June 2014, 13:35

Originally posted by Scruff View Post

She could probably get you under the Phoenix Principle...

Phoenix my half of the company, I'll take him to the effin' cleaners.

**Platypus** · 16 June 2014, 14:36

Try to buy her out quickly and cheaply

EDIT: because remember that the money belong to the company, not to you or her

**d000hg** · 16 June 2014, 14:44

Tangent Question: is it better to be benched while you get divorced so it looks like you're not earning much/anything?

**northernladuk** · 16 June 2014, 15:35

Originally posted by d000hg View Post

Tangent Question: is it better to be benched while you get divorced so it looks like you're not earning much/anything?

Can't see how that will help. They will take the company money in to account and she will be able to explain how the bench and contracting works. He can also still pay himself while on the bench as well so it's nothing more than a smoke screen they will easily see through. While he is trying this he isn't getting anything either, even if he will only end up with 50% of it.

**Platypus** · 16 June 2014, 15:43

Being on the bench and all depressed and upset with no chance of finding work might help her see that a quick full-and-final settlement of her shares vs. some money is the best route forward.

Any money in the company will quickly dwindle without some income, so continue paying yourself a salary.

The shares are IMO worthless unless they can be sold. It's likely you're going to be the only buyer in the market.

No matter how in love I was or how tax efficient it is, I'd never be 50/50 shareholder with a partner again. I was lucky in that my ex signed the shares back to me for some small consideration.

Divorce and Wife Company Shareholder