Can I stop my ex from running down his business? – The Ex-Files

Protecting assets, such as a company, can be a key concern when a couple separate. Photo / 123rf

Can I stop my ex from running down his business?

He’s making no effort with his cleaning company and says he’ll just start a new one.

My partner and I separated nine months ago after 15 years together. My partner ran a successful cleaning business that contracted many staff. He has told me he will run down the business and set up a new company. We have loyal customers, but he is not putting any effort into the cleaning business.

He is threatening to open a new cleaning business or move overseas and I will get nothing. He says I can do nothing about it as he is the sole director.

He also has an extensive collection of expensive watches, some of which he is selling on Trade Me. I have photos of some of the watches.

Q: What can I do about the company’s value and my share of the watches?

A: I am very sorry about your separation and the problems you are having with your ex. You will need to engage a family lawyer and likely receive advice from an accountant to resolve these matters.

Company value

Generally, the date at which the value of any relationship property is determined is the date of any hearing or settlement.

However, the court has discretion in section 2G(2) of the Property (Relationships) Act 1976 to decide that the value should be determined as at another date.

Further, you can apply under the act for compensation when relationship property has been materially diminished in value by the deliberate action or inaction of one party during the period between separation and the date of any hearing. You must get expert advice on the company and what has occurred during the relationship and post-separation. You will also need to gather as much information as possible to demonstrate your ex has deliberately caused the value of the shares to become worthless or at least to reduce in value.

This may include correspondence between you and your ex or with another party, financial statements and other documents. If you are unable to obtain these documents, you may need to seek disclosure from your ex or pursue disclosure through the court process.

Another option would be to take over the business yourself.

Watches

If the watches have been acquired during your relationship then they will be relationship property to which you are entitled a share.

First, it will be necessary to understand the total amount, make, condition and age of the watches. Once you have all these details, we would strongly suggest obtaining a valuation of the collection.

You should also look through recent bank statements, say three years, to determine the amount spent on watches during that period. If you cannot obtain those bank statements because they are in the other party’s name and not joint names, then a request would need to be made to the opposing lawyer or even by filing for discovery in the Family Court.

Summary

These matters require valuation evidence, which in most cases will require the involvement of an accountant or other expert. You will generally need to move quickly to preserve any asset and discover its value.