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  • Commercial property shares

    My wife and I have a business which owns a commercial property that has been for sale for a few months. We just agreed verbally on a separation date of Feb 1st. The building is conditionally sold with a closing date of late May. My shares in the company are slightly less than my wife's. according to property tax assessments, the building is valued significantly lower than our selling price. My question is, am I only entitled to the percentage of value now, or after it sells?

  • #2
    If your wife buys you out now, and you agree, for any price you agree on, then she would be sole owner and would reap the benefit of the final selling price.

    In the meantime, in that you both are shareholders, any funds from the selling price should be distributed according to your percentage of ownership.

    The question is the value of your share of the business on valuation (separation) date.

    Let's say the business was worth $100 on V-date. You have a 60/40 ownership, so you have $40 of assets on V-date, and she has $60. According to Family law, given all other calculations for equalization, you should split those combined assets 50/50. This is a paper transaction and does not require the sale of the asset. From this point on you are business partners.

    Fast forward several months. Luckily the business sells at a higher value. It sells for $200. You split the sale 60/40, and she gets $120, and you get $80.

    At this point, she still owes you $10 from the equalization calculated from the separation date.

    Is that clear?

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