Selling all of my shares in my S-Corp?

Question

My soon to be ex-wife own a small business and I want out! Is it possible to sell my share of the business, step down as president and make my way out the door asap? Please help with the steps that I need to take, at the prestent I do not trust or business lawyer, as he may have stepped out of his bounds (another problem for another time).

My soon to be ex and I own 50-50 in the business with 50% shares of stock in each of our names

Business was turning a good profit, until she told our biggest client that we were no longer taking anymore business, she shut down our website and drained the busness account....I am stuck working a part-time job making no money, which mean hiring a new lawyer is going to be money I do not have and I am unable to get back in to my career field( & make good money) until I am out of the business. I did have an interested party in the business and thought the selling my shares, getting out & cutting my losses may be the best. The business has great potential and we were turning a good profit in the first three months, and to be honest she can screw over a different business partner over like she did to me

Answer 1

To start with, it is entirely possible that the business will not survive the divorce. It is also highly possible that your wife (or the business) does not have enough cash to buy you out at a fair price. So, if the two of you are on speaking terms, you may want to sell the business before you initiate divorce proceedings. Alternatively, your wife may have to borrow to buy you out.

If you are looking to sell your interest to an outsider, you may or not be able to do so (check your corporate by-laws; it's possible that they restrict change of ownership). Even if you can sell out, you will not get a good price, because the buyer (should you find one, which is not a guarantee) will not have full control over the business.

If the business makes money, you can use your ownership in it as a bargaining chip. For example, you can negotiate retaining other jointly owned assets (such as the house, if you have one), while your wife gets the business. If the business does not make money, your wife would have an incentive to do the opposite -- hand the business over to you in exchange for relinquishing your claims on other assets...

Regardless of any of the above, you should get your own lawyer and have him or her look over anything the other party suggests.

Answer 2

Of course you can sell your shares. However you should have had a corporate attorney from the get go and a corporate book that shows the owners of the business. You can also get out of it by forcing her to buy your half as well, which can be conducted during your divorce. (who gets the business). You can once the shares are sold file papers to remove your name off any legal or business binding papers. But your best bet is to sit down with an attorney and tell them what you want. I hope this helps.

Answer 3

Hire your own attorney.......you'll need one anyway.