I am currently 11 months into separation - very amicable. Married for 6 years, 1 child (3 years). I''ve averaged around £90k per annum, and she earned circa £20k per annum. I always paid for everything (all bills, mortgage) and what she earned was hers.
Ex has worked since day 1, and whilst didn''t work when child was born, she was only stay at home Mum for a few years, before going back into employment.
I''ve slowly bought into my company (slowly acquiring shares), which has largely funded by re-mortgaging my parents house (i.e. they loaned me the money, and I am paying back over the next 10 years). So, whilst I have the shares in my name, they have a loan against them. At the point of exit, then you could argue that it has value, but equally, it could fail. If I am paying off a large loan (for those shares) surely, if the ex doesn''t want this debt, then she shouldn''t have any reward if and when company is sold.
I have very little capital (around £60k of equity in the house). Since moving out of the marital home (which I am paying 100% of mortgage), I''m now having to pay rent to live elsewhere, and along with my loan payments, I''m hardly living the life of luxury, yet nor am I on the breadline.
We''ve agreed a financial settlement between us which basically means I double the CSA figure (which happens to exactly cover mortgage), and transfer 99% of house over, and keeping 1% (simply that mortgage company would not cover mortgage on her earnings), meaning that I am looking at renting a property for at least 5 to 10 years (as even if I can find a £100k deposit, this previous mortgage is hanging around my neck). In return for effectively guaranteeing her mortgage, and paying for the house, and passing over equity (and future enhanced equity when house sold),I am asking that the shares in my company (which profit generates my income to pay for the above, and of course, my life!) remain all with me.
My question is this - even if we agree this in principle, is a court/judge likely to overrule?
Splitting the business (has other shareholders) could be a nightmare, and its value is based on ME working, as without me, the business would be severely affected, and therefore, the mortgage payments would be under threat. She has never been involved in the business.
Sounds like you need some good sound professional advice - valuing businesses is very complicated and expensive. My STBX and I each have our own businesses and they are classed as marital assets whether you have both worked at them or not (I think!). One point that our Mediator made was that as well as the actual value of the company or business there is also the value of the income stream that the business provides. Is your wife happy with the proposed settlement or does she want a slice of the business too? It could cost more the argue about than the actual value. Have all of your assets and liabilities been disclosed on form E? Without everything out in the open and taken into account it''s difficult to know what it a fair split.
Good luck with it all, and hopefully someone with a bit more knowledge than me will be along soon!
I wen through a similar situation in 2006-2008. The valuation of minority or even the majority shareholding in an unregistered company is something no specialist valuer I contacted would touch.
Oh they would all take my money for a valuation but not one was prepared to stand up in court and defend their valuation from attack by a barrister. So I did my own valuation.
I didn''t have to convince a barrister, I just had to convince the ex. If you have an agreement then the court will be loath to interfere with it. The valuation you need to do is dead easy. Assets and liabilities when you aren''t there! My reasoning is that your presence cannot be divided up amongst the shares, you are either there with your share holding or you aren''t. So who needs an MBA? lol!
Good luck to the two of you in keeping the dialogue going!
Well - so far, she seems happy with the outline financial plan. Lets face it, the profits are my earnings, which in turn, she gets 15% of my earnings (for 1 child), so the more I earn, the more she gets. Also, I''m paying double what he CSA says I should. I kind of feel that the business is me, rather than valuing me AND my business!
That''s my real worry here......she is quite happy with the proposal, even though a solicitor says she could get more (well, they would, wouldn''t they, as how else could they earn money). My worry is that even if we agree everything, a court/judge might turn around and demand shares - which in itself could be a nightmare - not just financially, but the whole structure of our company and how it operates.
No, the judge won''t interfere but the judge may very well ask something unless you both say in the submission with the draft Consent Order that you have agreed this between yourselves and you that you have both had the benefit of legal advice.