Wife fails to force husband to sell company shares during divorce
A wife has failed in her attempt to force the immediate sale of her former husband's company shares as the High Court ruled it was “was not a propitious time to sell”.
The wife had applied for financial remedy orders after the seven-year marriage broke down.
She was from a wealthy family and the couple had two homes that had been bought with the help of her father.
The wife had various shareholdings in companies operated by her father and was the beneficiary of several family trusts.
The husband owned 50% of his trading company and earned £619,000 net per year. There was a dispute over how much the business was worth, with various reports valuing it between £48.9m and £77.3m.
The wife submitted that the husband’s business should be sold so the proceeds could be split 50-50.
The husband wanted to wait until he had realised his interests in the company over a five-year period to maximise its value.
The court heard that the business had just recorded its two worst years.
It didn’t order an immediate sale as it was not a propitious time to sell and the husband would have to bear a substantial discount on the value of his shares.
Instead, he was ordered to pay a lump sum of £8.9m as well as periodical payments of £50,000 per annum.
Please contact Richard Phillips or Kirsty Bowers if you would like more information about the issues raised in this article or any aspect of family law.