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My uncle went through a similar situation. He owned a company and got divorced, he had to pay her out the valuation of the company, just like he had a mortgag
by dbg31415 10y ago
My uncle went through a similar situation. He owned a company and got divorced, he had to pay her out the valuation of the company, just like he had a mortgage. What's worse, she went to some stupid get all your money in one lump sum place and instantly lost like 60% of the value. So in addition to losing money to interest he had to live with knowing that his kids only got 40% of what he was paying.
It taught me that it's important to have a prenup. There are things that should be communal assets, a company is not one of those things.
Any way to just close the company down and then re-found it with your partners? Or structure it so that they "fire you" or buy you out for a fraction of the value and then give you equity bonus on rehire? I don't know if any of these things are legal, but after seeing how miserable my uncle was, I would go to extreme lengths to avoid being in a situation where I had to buy my own company back from my ex-wife.
- allfou 10y agoIt's not about the value the day you file for a divorce. It's about the value he had during the marriage period. Selling shares right now won't change much.