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History: Home UK Divorce Forum
Topic:
Divorce with Company shares and debts (3 Posts)
Started By:
Date:
11 January, 2017 04:05PM
Divorce with Company shares and debts
Misterwhat - 11 January, 2017 04:05PM
Hello,

Me and my wife are going through a real rough patch, it's time to start considering what may happen if we divorce.

We have been together 14 years. married for 9 with 2 kids ages 6 and 9.

I don't quite understand how the divorce would work because I have some shares in the company I work for that have been taken up through and Enterprise Management Incentive scheme.

I have been buying shares in my company for the last 4 years and it has been costing me £17,000 for each of the 4 years. In return of this I get dividends from company as and when there is enough money. I was offered this as I was doing rather well at work.

For the first 3 years of this scheme I have only been putting in half the money (£8500) and the company in the way of a loan (in my name) have been putting up the other half. 2016 was the first year I put the full £17,000 in.

I own 6.5% of the company and the shares are non-voting. There are 2 other business partners that own the rest of the company and have voting shares.

My questions are these:

1) What happens to these shares and dividends on Divorce.

2) With the loans for the shares from work and other personal debt I owe around £50,000. The shares though when the company is sold would be worth substantially more, around £204,000 as with the EMI scheme you only pay a third of the market value of the shares as agreed by HMRC.

3) What happens with the debts? My wife obviously wants all the good stuff from any divorce but as these debts have been ran up over the years by both of us where do we stand with that?

4) The house, we have about £20,000 of equity in the house, what would happen there?

I cannot force the sale of the shares as they are non-voting. It's up to the business partners when or if they want to sell. The shares are solely in my name and have been paid for by myself.

I also have 2 kids that are young and I'm not trying to get away with anything, I am more than happy to pay my way but I would like to know where I stand.

It seems very complicated to me

Thanks for any advice.
Re: Divorce with Company shares and debts
Misterwhat - 12 January, 2017 03:02PM
Anyone?

Did I leave any information out or are ople just as confused as me!
Re: Divorce with Company shares and debts
davidterry - 12 January, 2017 07:09PM
Well, the shares will be valued at whatever they can be sold for now or in the foreseeable future and they will be treated as a matrimonial asset if they have any significant value (as they very likely will judging from the amount of money that has been put into them).

As to debts, that depends upon your income and that of your wife. if you earn £100,000, your wife earns £100,000 and the debts are £20,000 then they would probably be split equally. On the other hand if you earn £100,000 and your wife earns nothing you will end up with the debts because you will be the only one with an income able to service them.
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