Can anyone advise me please. I am going through a divorce and she has mentioned that she is entitled to half the business. I am in a partnership in the business with two friends (therefore a third share) and when we started I took out a personal bank loan of £25k, this on top of 3 credit cards (maxed out). The business is within the brewery industry, we lease a social club and refurbished the main function room. Last year my wife took out a personal bank loan for £15k so we could refurbish the main lounge area. The business pays for the loan and the payments on the credit cards. Our first year accounts, showed a £25k loss.....this was due to all the refurbishment costs. Our second year accounts shows a £20k loss......we have recently took on a lease of another venue which we hope will be the starting point of our financial turnaround (well, within the next 5 years). Can anyone tell me what she can claim from the business as it currently stands or does she have any rights to the future potential profits.
sorry - just realised the business is paying the loan. is there some formalised agreement for this? I suspect she will be concerned about this whilst divorcing (I''m still paying a £10k loan taken out in my name for my ex''s business!!!).
You need to have a good look at the Ancillary Relief forum and post details of yours and your ex''s financial situations for people to be able to advise further.