A Texas business owner is facing a painful split, not just from his wife, but potentially from the company he helped build. He says he’s done almost all the work since 2021, but legally owns just 2% of the business. His wife holds the other 98%, a structure their accountant recommended for tax reasons.
Manny, who shared his story on the “EntreLeadership” podcast recently with personal finance expert Dave Ramsey, said, “She’s actually 98% owner of the business and I’m 2% owner. Our CPA told us to set it up this way for tax purposes.”
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Now, amid their divorce, Manny wants to keep the business he works in full-time. “Even though she was the 98% owner, I did 98% of the work,” he said. “All I want from this divorce is the business.”
He says he offered to walk away from everything else – the house, the bank accounts – just to keep the company. But his wife hasn’t given him a clear answer. “She just keeps telling me, ‘I don’t know,’” Manny said.
Ramsey was direct: “You can’t just sit with her owning it and you working there. That’s not going to work.”
The couple’s mediation is scheduled for the following week, and the outcome will determine Manny’s next move. If his wife agrees to transfer the business, he plans to keep growing it. If not, he’s prepared to start a new heating and air conditioning company and attempt to move his existing clients over.
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“[It’s] a pain in the butt,” Ramsey said. “But that’s what divorce is, it’s a pain in the butt.”
He advised Manny to be ready to present the reality to the mediator. “She’s not going to get anything,” he said. “All she’s going to do is put this one entity out of business. The next morning I’ll be open in a different name.”
Manny admitted he didn’t prioritize his marriage. “I was very selfish,” he said. “I always prioritized work, providing a roof and food. I thought that was enough, but I’m realizing now that’s not enough.”
He also acknowledged he stayed out of the business’ finances. “That was my mistake for not looking at the books,” Manny said. “She did all that.”
