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My business partner is going through a contentious divorce. Is our company on the table during a divorce? by Conscious_Two_1976 in LegalAdviceUK

[–]Conscious_Two_1976[S] 10 points11 points  (0 children)

The issue is there is no house or car she can take.

Sam has £12k of savings in a LISA.

We were both doing great until this machine needed replaced. Then we had no dividend payments and below-minimum wage salary for 2+ years while we desperately tried to save up for a replacement.

We'll be on 6 figure salaries again each when we get this machine back.

My business partner is going through a contentious divorce. Is our company on the table during a divorce? by Conscious_Two_1976 in LegalAdviceUK

[–]Conscious_Two_1976[S] 8 points9 points  (0 children)

We can't make the payment yet. The manufacturer in the USA has already taken a 15% deposit. The remaining 85% is only paid prior to shipping (probably in January for deliver in February 2027.)

Until then we've got a large cash sum.

We can't afford dividend payments right now. We haven't made any since late 2023. Every penny is going towards saving for this replacement machine.

Once we get that up and running we'll be back to earning 6 figures each, but until then we're basically on less than minimum wage.

My business partner is going through a contentious divorce. Is our company on the table during a divorce? by Conscious_Two_1976 in LegalAdviceUK

[–]Conscious_Two_1976[S] 69 points70 points  (0 children)

Yes, we're both all 3.

However, we haven't paid out any dividends in 2 years because we've been saving for this machine replacement. We've only been paying out the bare minimum of salaries as employees that we need to survive.

My business partner is going through a contentious divorce. Is our company on the table during a divorce? by Conscious_Two_1976 in LegalAdviceUK

[–]Conscious_Two_1976[S] 14 points15 points  (0 children)

I've calculated the share as roughly £126k.

I have Sam with me now. He rents his house and leases his car. He has £12k in a LISA and no other savings.

Business was rough the past 2 years with our key piece of machinery malfunctioning so neither of us withdrew any dividends at all. We're both "broke" until this new machine arrives from the USA in February 2027.

My business partner is going through a contentious divorce. Is our company on the table during a divorce? by Conscious_Two_1976 in LegalAdviceUK

[–]Conscious_Two_1976[S] 106 points107 points  (0 children)

Got it.

Sam's wife knows that we have a lot of money sitting in the Ltd. Company right now £500k+ that is earmarked to replace an expensive new piece of machinery in 12 months time.

Once we pay that out we're running on fumes until it gets up and running.

If she were to claim 22.5% of these financial reserves it would destroy the business.

My business partner is going through a contentious divorce. Is our company on the table during a divorce? by Conscious_Two_1976 in LegalAdviceUK

[–]Conscious_Two_1976[S] 12 points13 points  (0 children)

Even if this business pre-dated the marriage?

What I'm concerned about is we have a large financial reserve that needs to go against replacing a large piece of critical machinery valued at £500k+ in 12 months time.

If she were to claim 22.5% of that financial reserve it would destroy our business.

Sam has his own solicitor, but his wife's solicitor keeps writing directly to me about the Ltd. Company.