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Sean
Sean, Experienced lawyer
Category: Australia Law
Satisfied Customers: 855
Experience:  Law degree with 1st class honours from Australian National University.
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I have started a bussiness with my brother inlaw 2 months ago

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I have started a bussiness with my brother inlaw 2 months ago and in that time he as split up with his wife. Is she Entitled to 50% of his 50% of both money and assets going foward.
Thanks Rod.


Hi Rod, can you tell me the legal structure you have for the business - is it through a company or do you have a partnership?

Customer: replied 3 years ago.


Yes both are set up as a Pty Ltd Company the asset part and the running company . The asset company has all the trucks drills etc and running Company leases them back for tax resons.


OK thanks. So she won't be entitled to 50% of his 50% share of the companies. What will happen is all of their assets will go into a theoretical pool, and the court will decide how the total pool of assets is divided. Under your companies' constitutions, he would not be able to give her a part share of his shares, or transfer his shares to her, without your consent. The court will take this into account when dividing up the assets and take into account that the share in your companies will most likely need to stay with your brother-in-law, so other assets will need to go to her. It's not like they are shares in a public company that can be easily transferred - shares in a private company like this cannot easily be transferred without the consent of the other shareholder. So this will be taken into account, and the wife will not get any of the shares in your company unless you consent.

Customer: replied 3 years ago.
Would she be entitled to any future profit

No. Only shareholders are entitled to profit, and unless you consent to her becoming a shareholder that won't happen.

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