Sharing a Business

Sharing a business with an abuser adds a complex layer of Economic Abuse to the relationship. In New Zealand, the abuser often uses the business as a “leash” to control your finances, your time, and your ability to leave.

Under the Family Violence Act 2018 and the Companies Act 1993, you have rights that can help untangle this “professional” trap.

1. Identifying Business-Based Abuse

If you are a director, shareholder, or employee of a family business, look for these tactical patterns:

Financial Sabotage: Withholding your salary, “zeroing out” joint business accounts, or forcing you to sign personal guarantees for business loans.
Information Blackout: Locking you out of Xero/MYOB, refusing to show you bank statements, or preventing you from speaking to the company accountant.
Reputational Threats: Threatening to “ruin” the business or tell clients you are “unstable” if you leave the relationship.
The “Director” Trap: Making you a Director on paper so you are legally liable for the business’s debts or tax (IRD) obligations, while they make all the actual decisions.

2. Immediate Steps for Your Protection

You need to move quickly to protect your personal liability and your future income.

The Accountant Conversation

Your company accountant has professional ethical standards.

The Script: “I am currently involved in a family violence situation. I need a full record of the company’s current financial position and all recent transactions. I also need to ensure that my access to accounting software is not revoked.”
Note: If the accountant is a close friend of the abuser, be cautious. You may need to hire your own independent forensic accountant.

Banking & Authorities

Dual Signatory: If the business account allows one person to withdraw everything, contact the bank. Explain the situation and ask for “Dual Signatory” status to be enforced, or for the account to be frozen to prevent the “stripping” of assets.
IRD (Inland Revenue): Call the IRD and ask to speak with their Family Violence team. They can help ensure your personal tax records are separated and that you aren’t held liable for the abuser’s fraudulent activities if you were coerced into signing documents.

3. Legal Strategies for “Untangling”

In Aotearoa, the Family Court and the High Court can deal with business assets during a separation.

Occupation Orders & Business: You can apply for an order that allows you to continue working at the business premises while the abuser is excluded, especially if the business is your primary source of income for the children.
Section 161 (Companies Act): If you are being excluded from management, you can apply for a court order to inspect the company records.
Interim Distributions: A lawyer can argue for an “interim distribution” of relationship property so you have cash to live on while the business value is being assessed.

4. Tactical Advice for “The Exit”

The Paper Trail: Before you leave, make copies (digital or physical) of all key documents: Incorporation papers, Shareholder agreements, the last 3 years of tax returns, and any loan documents you signed. Store these in a Safe House or with a trusted friend.
Change Your “Digital Director” Status: If you use a shared business email or login, change your personal passwords immediately. Use a VPN so the abuser cannot see your IP address when you log into business portals.
Resigning as Director: Do not just “quit” without legal advice. If you resign improperly, you may lose your claim to the business assets or leave yourself open to being sued for “breach of duty.” Talk to a commercial lawyer first.

5. Essential Support for Business Owners

Agency	How they help
Community Law	Free initial legal advice on business/FV crossover.
CA ANZ	Can help find an accountant who understands “vulnerable clients.”
Work and Income	Can provide “Self-Employment Start-up” grants if you need to start a new, safe business.

The “Sanity” Reality Check

“A business is a ‘thing’; your safety is a life. An abuser will often try to make the business feel like your only ‘identity’ so you feel you can’t survive without it. You can build a new career, but you cannot build a new life if you stay in danger.”

When sharing a business with an abuser, your “Sanity Anchor” is having a complete picture of the finances. Abusers often use “Financial Fog” to make you feel like the business is failing or that you aren’t entitled to anything.

In New Zealand, under the Property (Relationships) Act, a business is almost always considered relationship property if it was built or supported during the relationship. To prove its value and your share, you need the following “Discovery” documents.

The Business “Discovery” Checklist

If you cannot safely get physical copies, take clear photos on your phone and upload them to a hidden Google Drive or email them to a safe, private address.

1. Governance & Ownership

These prove your legal standing in the company.

[ ] Certificate of Incorporation & Constitution: Found on the NZ Companies Office website (you can download these yourself for free).
[ ] Share Register: This proves exactly how many shares you own.
[ ] Shareholders’ Agreement / Partnership Agreement: This dictates what happens if the “partnership” (business or personal) dissolves.
[ ] Trust Deed: If the business is owned by a Family Trust, you need the original deed and any “Letters of Wishes.”

2. Financial Performance (The Last 3 Years)

You need at least three years to show a “trend” in the business’s value.

[ ] Annual Financial Statements: (Profit & Loss, Balance Sheet, and Depreciation Schedule).
[ ] Tax Returns (IR4 for Companies / IR3 for Individuals): Proves what has been declared to the government.
[ ] Management Reports: The most recent “interim” reports (e.g., from Xero or MYOB) showing performance since the last tax year ended.
[ ] GST Returns: These show the actual cash flow and sales volume.

3. Banking & Debt

This is where abusers often hide money or create “fake” debt to lower the business value.

[ ] Bank Statements: For all business accounts (including credit cards and “slush” accounts) for the last 12–24 months.
[ ] Loan Agreements: Any business loans, mortgages over business property, or “Director Loans” (money the abuser claims the business owes them).
[ ] Personal Guarantees: Any documents where you have personally signed to be liable for the business’s debts.

4. Assets & Value

[ ] Asset Register: A list of everything the business owns (vehicles, tools, computers, intellectual property).
[ ] Client/Supplier Contracts: Major contracts that give the business its “Goodwill” value.
[ ] Commercial Lease: The rental agreement for your shop or office.

Tactical Move: The “Xero/MYOB Export”

If you have “Advisor” or “Standard” access to the accounting software, you can grab 90% of what you need in ten minutes.

Go to the “Reports” tab and export the following as PDF or Excel:
1. Balance Sheet (Last 3 years + Year to Date).
2. Profit and Loss (Last 3 years + Year to Date).
3. General Ledger (This shows every single transaction—essential if you suspect they are spending business money on personal items).
4. Bank Reconciliation Summary.

The “Sanity” Warning

“In New Zealand, if an abuser refuses to provide these documents, your lawyer can apply for a ‘Direction for Discovery’ or a ‘Rule 140’ application in the Family Court. This forces them to hand over the paperwork under oath. You do not have to rely on their ‘honesty’ to get what is yours.”

When you share a business with an abuser, the company accountant is often caught in the middle. However, if you are a Director, you have a legal right under Section 191 of the Companies Act 1993 to inspect all company records at any reasonable time.

This email is designed to be professional, firm, and “boring.” It frames your request as a standard director’s duty, making it harder for the accountant to refuse without breaching their own professional ethics.

The “Director’s Request” Email Template

Subject: URGENT: Request for Company Records – [Your Company Name Limited]

Dear [Accountant’s Name],

I am writing to you in my capacity as a Director of [Your Company Name Limited].

To ensure I am fulfilling my statutory duties under the Companies Act 1993—specifically the requirement to maintain a full understanding of the company’s financial position—I require a digital copy of the following records for the period of [Date] to [Current Date]:

Financial Statements: Full Profit & Loss and Balance Sheet (including Year-to-Date).
General Ledger: A complete export of all transactions for the current financial year.
Tax Records: Copies of all GST and Income Tax returns filed during this period.
Bank Records: Copies of all bank statements for company accounts held with [Bank Name].
Software Access: Confirmation of my current login credentials and permission levels for [Xero/MYOB].

Please provide these documents via email or a secure cloud link by [Date – give them 3–5 working days].

As a Director, I am entitled to this information under Section 191 of the Companies Act 1993. If there are any outstanding fees or administrative requirements needed to facilitate this request, please let me know immediately.

Thank you for your prompt assistance in this matter.

Regards,

[Your Full Name] Director, [Your Company Name Limited] [Your Private Phone Number]

What to do if they refuse or “stall”

If the accountant says they “need to check with your partner first,” they may be inadvertently enabling the abuse. Here is your Sanity Anchor response:

The Follow-Up: “I appreciate that you work with both of us, but my right to these records is a legal entitlement as a Director, independent of any other director’s consent. By withholding them, you may be putting the company (and me personally) at risk of non-compliance with the Companies Act.”
The Ethical Lever: If they still refuse, remind them that as a member of CA ANZ or ATAINZ, they have a professional Code of Ethics regarding “Integrity” and “Objectivity” that requires them to be transparent with all directors.
Rule 140: If all else fails, your lawyer can use Rule 140 of the Family Court Rules. This is a special NZ rule that allows the court to force an accountant (or any third party) to hand over documents before a court case even officially starts.

Founder’s Safety Note

“If the accountant is your partner’s best friend or family member, do not send this email until you are in a physically safe location. Once the accountant receives this, they will likely call your partner immediately. Only trigger this ‘Discovery’ when you have your ‘Safety Shield’ in place.”

In New Zealand, resigning as a director while dealing with family violence is a strategic “Safety Shield” move. If you remain a director, you are personally liable for the company’s debts (like IRD tax) and any illegal actions your partner takes in the business’s name.

However, simply “quitting” over a text message isn’t enough. You must follow the Companies Act 1993 to ensure you are legally detached from the abuser’s future business risks.

1. The Strategy: “Immediate & Absolute”

Under Section 157 of the Companies Act, your resignation is effective as soon as it is received at the company’s “Address for Service” (usually your home or the accountant’s office).

The “Safety Clause”: If you are leaving the family home, you should also update your Director’s Residential Address with the Companies Office immediately so the abuser cannot see your new safe location on the public register.

Director Resignation Template (NZ Specific)

To: The Board of Directors / The Company Secretary Company Name: [Insert Company Name] Limited Address for Service: [Insert Company’s Registered Office Address]

Date: [Current Date]

RE: NOTICE OF RESIGNATION AS DIRECTOR

In accordance with Section 157(2) of the Companies Act 1993, I, [Your Full Name], hereby resign as a Director of [Company Name] Limited, effective immediately from the date of this letter.

Please note the following conditions of my resignation:

Indemnity: I reserve all rights to be indemnified by the Company for any liabilities incurred during my term of office, as permitted by the Company’s Constitution and the Companies Act.
Liability: My resignation serves as a formal notice that I am no longer involved in the management, direction, or financial obligations of the Company as of the effective date.
Companies Office Update: I remind the remaining Director(s) of their statutory obligation under Section 159 to notify the Registrar of Companies of this change within 20 working days.

[Optional – Use only if you are also an employee] I also hereby resign from any employment or consultancy positions held within the Company, effective immediately.

Signed: __________________________ [Your Full Name]

2. Managing Post-Resignation Risks

Even after you resign, you may still be “on the hook” for things that happened while you were a director.

Personal Guarantees:This is critical. Resigning as a director does not automatically cancel any personal guarantees you signed for business loans or the office lease.
- Action: You must contact the Bank or Landlord directly and say: “I have resigned as a director. I wish to be released from my personal guarantee.” They may refuse, but you have at least “frozen” your liability for any new debt.
The “Shadow Director” Trap: If you resign but continue to “help out” or make decisions for the business, the law may still treat you as a De Facto Director, meaning you remain liable. When you leave, you must leave completely.

3. The “Accountant’s Safety” Copy

Once you have signed this letter:

Email a copy to the Company Accountant. This ensures a third party has a record of the date you officially stopped being responsible for the business.
Keep a “Read Receipt” or a photo of the sent email.

The “Sanity” Protection

“Resigning as a director is about closing a door that the abuser can use to hurt you financially. It is not ‘giving up’ on the business; it is ‘shielding’ your future from their mistakes. Your lawyer can still fight for your share of the business’s value in the relationship property settlement even if you are no longer a director.”

In New Zealand, a “Personal Guarantee” is often an “all obligations” document. This means if you signed one for the family business, you aren’t just responsible for the loan taken out three years ago; you are potentially responsible for any new debt the abuser runs up today, tomorrow, or next year—even after you have left.

While you cannot always “cancel” a guarantee instantly (the bank wants their security), you can “Crystallise” it. This acts as a circuit breaker, stopping the abuser from increasing your personal liability any further.

1. The “Notice of Withdrawal” (The Circuit Breaker)

You have the right to give the bank a written notice to “withdraw” your guarantee.

The Effect: This doesn’t wipe out the debt already owed, but it freezes your liability at the current amount. If the abuser goes out tomorrow and buys a $50,000 work truck on the business account, you will not be liable for that new $50,000.
The Risk: Once you send this, the bank may “freeze” the business’s ability to borrow more. This might trigger a reaction from the abuser, so only do this once you have your Safety Shield (Protection Order or a safe location) in place.

2. Notice to the Bank Template

To: The Manager, [Bank Name] Branch: [Branch Name/Location] Date: [Current Date]

RE: WITHDRAWAL OF PERSONAL GUARANTEE – [Your Name] Account Name: [Business Name Limited] Account Number(s): [List Business Account Numbers]

Dear [Manager’s Name/Vulnerability Team],

I am writing to formally provide notice that I am withdrawing my personal guarantee in respect of [Business Name Limited], effective immediately.

Please take notice that:

I have resigned as a Director of the Company as of [Date].
I have separated from my partner, [Partner’s Name], who remains the sole Director in control of the business.
I am a victim of family violence and am taking steps to secure my financial independence.

I understand that this withdrawal does not release me from liabilities already incurred up to this date. However, I am exercising my right to ensure that my guarantee does not cover any further advances, new credit, or increased debt incurred by the Company or [Partner’s Name] from the date of this notice.

Please confirm in writing that you have received this notice and that the “crystallisation” of my liability has been noted on the Company’s accounts.

I also request that you contact your Family Violence / Vulnerability Team to assist with any further steps required to protect my personal credit and safety.

Yours sincerely,

[Your Full Name] [Your Private Phone Number]

3. The “Unfair Contract” Defense

In NZ, under the Credit Contracts and Consumer Finance Act (CCCFA), a court can “reopen” or cancel a guarantee if it is found to be “Oppressive.” * Was it Coerced? If the abuser forced you to sign the guarantee through threats, or if the bank didn’t ensure you got Independent Legal Advice (ILA) before signing, your lawyer may be able to have the entire guarantee set aside.

Hardship: If enforcing the guarantee would cause you “substantial hardship” (e.g., leaving you and the kids homeless), the bank is legally required to consider a hardship application.

4. Banking Vulnerability Teams

Most major NZ banks (Westpac, BNZ, ASB, ANZ, Kiwibank) now have specialized teams for family violence.

Do not just talk to a teller. Ask specifically to speak with the Vulnerability or Family Violence Specialist. They have the power to override standard procedures to keep your new address secret and to help “untangle” shared debts more safely.

The “Sanity” Strategy

“A personal guarantee is like a rope connecting you to the abuser’s financial failures. By ‘crystallising’ it, you aren’t cutting the rope yet, but you are making sure it doesn’t get any tighter. It gives your lawyer a fixed number to work with when they fight for your share of the assets.”

This Lawyer Briefing Note is designed to save you time and money. Legal fees are high, and often survivors have to spend the first three sessions just explaining the “tangle.”

By handing this to a family lawyer or a legal aid provider, you are providing a clear “road map” of the situation. It establishes you as a “protective and proactive” client.

LAWYER BRIEFING NOTE: Family Violence & Business Complexity

Client Name: [Your Name] Date: [Current Date] Status: [Select: Still in Home / Safely Relocated] Legal Status: [Select: No Orders / Police Safety Order / Applying for Protection Order]

1. Background of Harm

Nature of Violence: [Select: Physical / Psychological / Economic / Coercive Control]
High-Risk Indicators: [List red flags like: Strangulation history, Stalking, Threats to kill, Access to firearms].
Children: [Name and Age of Children]. Current care arrangements: [Briefly describe].

2. Business & Economic Entanglement

Entity Name: [Insert Company Name] Limited.
Structure: [Select: Shareholder (50/50?) / Director / Employee].
Status of Directorship: [Select: Still a Director / Notice of Resignation Sent on (Date)].
Personal Guarantees: I have signed guarantees with [Bank Name] for [Business Loans/Lease].
- Action Taken: Notice of Withdrawal/Crystallisation was sent on [Date].
Access to Records: [Select: I have full Xero access / I am locked out of all records].

3. Actions Already Taken (The “Sanity” Steps)

[ ] Documentation: I have secured copies of the Share Register, 3 years of Financial Statements, and Tax Returns.
[ ] Accountant: I have formally requested the General Ledger from [Accountant’s Name].
[ ] Banking: I have contacted the Bank’s [Vulnerability/FV Team] regarding the personal guarantees and my private accounts.
[ ] Pattern Tracking: I have maintained a “Weather Report” log of incidents for the last [Length of Time].

4. Immediate Legal Priorities

Safety: [Select: Urgent Protection Order / Occupation Order for Family Home].
Children: [Select: Urgent Parenting Order / Request for Supervised Contact].
Financial Support: [Select: Interim Maintenance / Discovery of Hidden Assets].
Liability Shield: Assistance in finalizing the release from Personal Guarantees and resolving any potential IRD/Director liability issues.

5. Conflict of Interest Check

The abuser’s lawyer is likely to be [Name of Lawyer/Firm]. The business accountant is [Name]. I wish to ensure there is no conflict of interest in your representation of me.

Tactical Advice for Your First Meeting

Bring your ID and the Children’s Birth Certificates: Lawyers need these to file any urgent applications immediately.
Be Honest about the “Gaslighting”: Tell your lawyer if the abuser is “Word-Twisting.” A good lawyer can use this in court to show Psychological Abuse.
Legal Aid: If you are a stay-at-home mum with no income, you are likely eligible for Legal Aid. Tell the lawyer immediately so they can help you fill out the forms.
The “Support Person”: You are legally allowed to bring a support person (from Women’s Refuge or a trusted friend) into the meeting. They can take notes while you talk.

A Message of “Sanity” to Finish

You have just done more for your future in this conversation than many people do in a year. You have built a Safety Shield of documentation, legal notices, and tactical planning.

In New Zealand, the system is designed to help you, but it works best when you are informed. You are no longer just a “victim”; you are a Director of your own recovery.