Advice please - family buisness

[montysrainbow]

Im going to make a long story short hubby and his father had a fencing buisness together up untill a few yrs ago his father passed away from cancer. My hubby had been part of it since 15 hyrs old and since the loss of his father he has continued to carry on with things BUT he has a step mother who became his buisness partner. Hubby does ALL the work and quotes etc however step mum B pays the bills and types up the odd email, we have an accountant deal with the tax. Problem is Hubby wants to carry it on solo and cut her out.....easier said than done i know. His reasons being that why should she get half when HE does everything and we have a morgatge and 7 kids to take care of, she has no mortgage and no kids AND the bit that bugs hubby the most is she gives part of her weekly earnings to the church Now hubby wants 2 take his half let her have hers BUT she is saying we have to buy her out! she wants $50 grand :shock: im aware we are going to have to get legal advice but omg y does it have to be so complicated.

She is always going away (currently in USA for a mths holiday!) and says , now dont ring me while im away blah blah i cant work from there.....but she still gets paid! *sigh* its becoming a long story so i shall end it now but what r your thoughts? do u think that legally we would have to buy out her half or would there possibly be ways around it? We are stuck between a rock and a hard place :? worst bit is Father inlaw always said the buisness was all ours and the house hers but words mean nothing and he died before he could change his will.

 

[disintegratus]

I'm not too sure how small businesses work etc, but could your hubby not just set up a new business instead? Basically continue doing what he's doing, but set up a new business name?

 

[montysrainbow]

we have had that thought run through our minds however we need money to make money and theres a ute , 4wd, trailers, etc that she wants half of. If we walked away completely we would be loosing too much because some jobs he uses $10 g just in materials! so we would have to raid the buisness account (in both their names) but then more than likely have her take us to court anyway. He also wants to keep the name, that means alot to him. I dont think walking away and starting fresh is that easy. Its causing so much stress for us.

He suggested to her that we put a 3 yr time frame on it so that she can make a plan b or whatever during that period, or he suggested him just take the ute and trailer plus half whats in the buisness account but no she wont have it that way. All she does is volunteer at her church and have tea parties and play tennis and golf with her friends!

 

[Ramsayi]

His reasons being that why should she get half when HE does everything and we have a morgatge and 7 kids to take care of, she has no mortgage and no kids AND the bit that bugs hubby the most is she gives part of her weekly earnings to the church
She is always going away (currently in USA for a mths holiday!) and says , now dont ring me while im away blah blah i cant work from there.....but she still gets paid! * do u think that legally we would have to buy out her half or would there possibly be ways around it?

None of the above is relevant in the slightest.She is not responsible for your mortgage or the 7 kids.My thoughts are you have to either pay her out provided she agrees or wind the business up and start over.She can also do as she likes with her money.

The first thing I would do is go speak to a lawyer.How did she come up with 50k as a buyout figure?

 

[montysrainbow]

she plucked that one out of her head.....if it gos that way we will be getting a pro to decide not her or us!

I understand your point about how she spends her money we r just annoyed that she isnt earning it !!!!!!!!

 

[Ramsayi]

For a start get the company valuated,talk to your accountant then go get legal advice.Nothing anyone can suggest on a reptile forum is going to be any help to you at all.

 

[montysrainbow]

For a start get the company valuated,talk to your accountant then go get legal advice.Nothing anyone can suggest on a reptile forum is going to be any help to you at all.

your probably right....we are going to talk to our accountant and get legal advice.

 

[Jacknife]

How far do you think she is from 'kicking the can'? If it's not too far away perhaps just wait it out at worst.

Professional legal advice is the only way to go on this one.

 

[Zipidee]

Professional legal advice is the only way to go on this one.

100% agree. You could get the whole thing into a massive tangle that could take years to sort out.

 

[bk201]

you obviously dislike this woman, send the business into the ground and take her down with you!

 

[Davesgonefishin]

Legal advice is the only way you can go. Otherwise ask HER for 50K to buy you out & see her wet her pants when she realises that your husband IS the business

 

[montysrainbow]

How far do you think she is from 'kicking the can'? If it's not too far away perhaps just wait it out at worst.

Professional legal advice is the only way to go on this one.

she is only early 50's lol not counting on that

you obviously dislike this woman, send the business into the ground and take her down with you!

lol would rather not

Legal advice is the only way you can go. Otherwise ask HER for 50K to buy you out & see her wet her pants when she realises that your husband IS the business

Hubby has thought about that but sadly it wouldnt work either. I think we will wait it out a bit longer and in the mean time do some research. OR hubby will snap tell her 2 get stuffed and we will end up in court....probably going to end there either way.
Thanks for the ideas

 

[saintanger]

sorry to hear what a bad situation your in. definatly find out what the bussiness is worth and if its less than 50k take her to court. also you should tell her if she wants 50% she needs to do 50% of the work.

if she continues to use your husband, drive the bussiness to the ground hand out new bussiness cards in your hubbys name only and start a new bussiness.
good luck

 

[bk201]

I see you post this onto a reptile forum because we are the most suspicious bunch!
What's this contract worth

 

[Dragonwolf]

Get legal advice! I went through this with my now-ex-husband and his parents (our business partners). We did 90% of the work, paperwork and shouldered most of the financial security. They took their money each week and because times were tight my ex-husband and I were often left with enough to pay the staff, the bills and not much else.
We had to buy them out :x..... totally unfair but the only legal way we had of severing the partnership and still carry on the business.
Good luck.

 

[montysrainbow]

Get legal advice! I went through this with my now-ex-husband and his parents (our business partners). We did 90% of the work, paperwork and shouldered most of the financial security. They took their money each week and because times were tight my ex-husband and I were often left with enough to pay the staff, the bills and not much else.
We had to buy them out :x..... totally unfair but the only legal way we had of severing the partnership and still carry on the business.
Good luck.

Yeah they say buisness and family dont mix....its only gonna end one way and thats ugly..... my husbands at breaking point.

 

[Pauls_Pythons]

Sell your share of the business to a friend who knows nothing about the business and only wants to help you out. Start up an alternative business then offer to buy her out for a nominal figure if you actually even want to at that time as your reputation will take most of the work to your new business anyway.

 

[phatty]

get her drunk and get her to sign a work place agreement and drop her wage and make her work more hours.
my family also own a fencing business our bigger problem is staff and imported products people want jobs and good money but no one want to pay for the aussie made products. Australia should be a self sustainable country but we out source every thing.

 

[sd1981]

Speak to the accountant, get the numbers on annual turnover, expenses , a complete breakdown so you know exactly what you stand to gain or lose by the outcome of severing ties with the old girl... Also speak to a solicitor and find out what is required, costs involved and the likely outcome including a buy out figure... Then approach her with the notion of ending the business, give her the option of buying you out. If she can't afford to do that, advise her that she's been piggy backing off your hubby and if need be, you are prepared to walk away and let the business collapse, which will cause her financial stream to dry up... Hubby is doing quotes, doing the manual labour and effectively floating the business. Remove hubby, remove business... If her greed is going to cause you financial struggle to pay her out, don't do it... If working with her means you can pay your mortgage, provide food and all life necessities for yourselves and kids, it might be what has to happen short term... Personally, I'd do what needs to be done to keep afloat, squirrel away a bit here and there until I have the cash float to start my own business or buy her out... Be aware that once solicitors are engaged to settle a financial issue, the only people to profit are the solicitors themselves.... Good luck...

 

[montysrainbow]

Speak to the accountant, get the numbers on annual turnover, expenses , a complete breakdown so you know exactly what you stand to gain or lose by the outcome of severing ties with the old girl... Also speak to a solicitor and find out what is required, costs involved and the likely outcome including a buy out figure... Then approach her with the notion of ending the business, give her the option of buying you out. If she can't afford to do that, advise her that she's been piggy backing off your hubby and if need be, you are prepared to walk away and let the business collapse, which will cause her financial stream to dry up... Hubby is doing quotes, doing the manual labour and effectively floating the business. Remove hubby, remove business... If her greed is going to cause you financial struggle to pay her out, don't do it... If working with her means you can pay your mortgage, provide food and all life necessities for yourselves and kids, it might be what has to happen short term... Personally, I'd do what needs to be done to keep afloat, squirrel away a bit here and there until I have the cash float to start my own business or buy her out... Be aware that once solicitors are engaged to settle a financial issue, the only people to profit are the solicitors themselves.... Good luck...

That makes alot of sense...thanks, i will definantly take your advice on board. Hard to know what the right thing to do is but it will all unfold sooner or later.