Reply to: How to remove a wife shareholder from a limited company?

[Lance]

neither wife thinks his input is exceptional enough to save a marriage.

FTFY

[northernladuk]

I have made plenty of those, pretty much everything she has is due to my wages, her career etc... I made it all happen too, pretty much fabricated her CV and used my contacts as references.

I don't think you commiting fraud is going to be considered as an exceptional circumstance in your favour. You making it happen for your partner tends to be what good partnerships are about as well so think you way overstating your position.

I expect every high earner in an imbalanced relationship ever has said the same. My mate is going through a divorce with his wife who was going through uni when the met and is early in to a career and you sound exactly the same as him. Believe me, neither solicitor thinks his input is exceptional enough to matter a jot.

[Drei]

The court does recognise imbalance and an "exceptional contribution" though.

I have made plenty of those, pretty much everything she has is due to my wages, her career etc... I made it all happen too, pretty much fabricated her CV and used my contacts as references.

[ASB]

Possibly. It depends on the individual circumstance. Age can be important too.

Any form of pre nup might help but no guarantee.

In essence both parties enter rhe marriage with their respective things and it is joint property. As is property gained through the marriage.

The court does recognise imbalance and an "exceptional contribution" though.

[cannon999]

I don't understand how it is relevant unless you started your company way before you got married? All assets are 50/50 during divorce regardless of whether the shares in your name or her name.

[Paralytic]

If you're on reasonable terms then you could buy her shares back but how you determine a fair market value is a challenge as the earnings ratio is a bit skewed in small companies compared to FTSE 100 firms.

For the majority of IT contractors, surely the fair market value is the assets of the company (probably not far off cash in bank plus unpaid invoices)?

if the other party tried to take future earnings into account, you'd just close the company and start a new one for minimum costs.

[ladymuck]

I'm gonna revive this because it is the only post with the relevant information in it... I need to look into this too)

So the best answers are talk to accountant then to a lawyer.

There's going to be circumstances particular to your situation that makes it difficult to give anything other than generic advice.

If you're on reasonable terms then you could buy her shares back but how you determine a fair market value is a challenge as the earnings ratio is a bit skewed in small companies compared to FTSE 100 firms.

[Drei]

I'm gonna revive this because it is the only post with the relevant information in it... I need to look into this too)

So the best answers are talk to accountant then to a lawyer.

[Nayab]

It may be possible to issue a different class of share that pays dividends at a higher rate than the existing ones. If you are the sole director, no problem in making such a decision. It means that while things are rocky, you can accumulate the capital (less expenses) until such time that it is forcibly removed from you.
Whether you choose this avenue, or the option of a new limited company, if things get that far, you will have to pay out a lot.
Good luck, I speak from experience.

[Major Hassle]

The important time is neither the nisi nor the absolute. It is formal settlement of the finances. It is probably wise to ensure this is done before the absolute. Otherwise it can be done years later and anything post divorce still has some relevance.

This - also at least with no legal aid it's a little bit harder to fleece you.

[ASB]

I am not a divorce lawyer, but if you do not have a pre-nup or another form of estate separation in place, she can go after all your assets, so starting a new company before getting a divorce is not going to save you. Start one after you get a divorce. But even then make sure you get a new client after you get a divorce, because if you "move" your current contract from the company you co-own to your new company, she can go after you claiming that you have diverted income on purpose.

Welcome to hell.

The important time is neither the nisi nor the absolute. It is formal settlement of the finances. It is probably wise to ensure this is done before the absolute. Otherwise it can be done years later and anything post divorce still has some relevance.

[northernladuk]

Its for people to show off how important they think they are and get a bit of a stiffy abusing strangers on an internet forum.

<sigh>

[psychocandy]

I have noticed you say this a lot. Agree its a valid avenue for him or her to use, but asking it on this site allows the 'many' to learn from some of the answers? what is the point of this forum if it is not to share and answer questions ?
I wonder how many hours you have spent typing the same stock response? Maybe you could have used this time more constructively as you seem to have a lot of knowledge in the contractor market.

Its for people to show off how important they think they are and get a bit of a stiffy abusing strangers on an internet forum.

[squarepeg]

I am not a divorce lawyer, but if you do not have a pre-nup or another form of estate separation in place, she can go after all your assets, so starting a new company before getting a divorce is not going to save you. Start one after you get a divorce. But even then make sure you get a new client after you get a divorce, because if you "move" your current contract from the company you co-own to your new company, she can go after you claiming that you have diverted income on purpose.

Welcome to hell.

[RonBW]

You mean walk out of the wedding reception before last orders?

The four stages of sex in a relationship.

Kitchen sex - you f**k everywhere, including the kitchen
Bedroom sex - you f**k in the bedroom every so often
Hallway sex - you walk past each other in the hallway and mutter "f**k you"
Courtroom sex - she f**ks you in front of the judge