# Wife, Separation, Business



## Hopeeternal (Oct 28, 2011)

OK,

First, I am not sure if this is where this post belongs so moderators and readers sorry if it is in the wrong spot. My wife and I are 50%partners in a small consulting firm. Two problems with this: she stopped working there about two-years ago but still draws a full share paycheck and we are now separating. the business is in the toilet (a long story I am HAPPY to go into with someone) and so is my career. The business is built around my career and she did finance. Anyway, I am working HARD to make the business survive (and my marriage too BTW) but if this thing ends in the D how do we separate the business end of things? I mean, I may be out of business anyway but if this thing survives, but the marriage does not, how do we split the company? I have offered to sell my half but the fact is that without me the company does not exist (not patting my own back here, it is a fact). Do we close it, divide what is left and then I can start a new company sans the XW (if it comes to that)? Looking for help and guidance here.


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## Dadof3 (Mar 14, 2011)

Q: What type of consulting do you do, HE?


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## deejov (Sep 24, 2011)

Might depend on where you live... but if you were 50% partners, you might have to give her 50% of the profits. She would have to agree to close out the business with you. Good luck with that, if you are separated and still letting her draw paycheques. Sounds like you are incorporated? This could be a tax mess for sure.

Shut the doors on it. Open one in your name only.


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## Hopeeternal (Oct 28, 2011)

Dadof3:I do archaeological contract work. She is NOT an archaeologist and the company rides on my back.

Deejov: She left the company almost two-years ago. When I said she gets a paycheck that is not exactly right. I wrapped her pay into my check. We are an LLC. I expect I will need to go talk to our tax guy or a tax atty. about this...more money I don't have! In a way closing is ok because the company is in the toilet anyway. The problem is getting back up and running.


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## deejov (Sep 24, 2011)

Tax guy for sure, 
I have seen small sole and one LLC case in my working lifetime where the angry spouse had invoice payments re-directed to their own account. You can check into this, and make sure that the company that pays you is made aware that you are 50\50 and any changes in remittance must be approved by both of you. 
I have seen it happen.


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## Hopeeternal (Oct 28, 2011)

I suspect that since are separating that we are going to shut the business down. We will be responsible for joint tax burden through the end of this year. I will then see what I can do about opening up another business but there are complications with that due to a bad reputation with the government entities that give me work permits (a series of problems with ex-employees that I am trying to fix after the fact. The govt. does not hold the ex-employees responsible, they hold me responsible). Good point on the invoices, I will see to it that I let my clients know this.


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