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Company and Divorce

Company and Divorce

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My client is a limited company, H&W directors and 50:50 shareholders.  I act for the company and both directors personally.  All was great until about a year ago when they decided to divorce.  My main contact is the wife, and she is relatively fine.  The problem’s with the husband.  He’s being particularly awkward, and having had no interest in the financials of the company in the past, is now asking questions which, to be honest, look like they’re being written by his solicitor, as he doesn’t really understand it.

The intended resolution is that the wife buys husband out.

So I have a couple of questions:

  1. Do I have a conflict of interest?  I think not, but I’m not sure.
  2. Can anyone see any particular problems if I stopped acting for the husband?

My ultimate aim is to keep the company as a client.

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By johngroganjga
07th Oct 2013 19:01

It sounds as though you are being asked factual questions as the accountant to the company. So there is no conflict - that is what you are. If the wife does not yet have a solicitor you should perhaps encourage her to engage one - as that will make it easier to remain neutral.

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By Richardrussell
08th Oct 2013 08:31

Thanks John.  They both have

Thanks John.  They both have solicitors, but they are obviously pushing their clients to take views which are best for their perspective outcomes.  It is getting harder to remain neutral!

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By johngroganjga
08th Oct 2013 08:42

Thanks.  The best strategy I

Thanks.  The best strategy I think is to let the solicitors do the partisan work and you make yourself available to provide information and technical support and to deal with the implementation of any changes as required.  If you get sucked into providing advice rather than information yes of course you can't advise both simultaneously, and presumably you'll choose the wife.

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