Big thanks to all of you who have replied to this thread.
I ended up speaking to a solicitor who specialises in internet law. I explained the circumstances in detail.
The solicitor said to tell her to get lost!
That night I took a call from the ex-client asking me when I would be transferring the domains over! Of course I said that I had spoken to a solicitor and that the domains would not be going anywhere. She then launched into a tirade of abuse calling me all the names under the sun, and even threatened to run me down in the car!
I smile when recalling that phone call.
I can see the headlines now....."Work at Home Father of 3 Gets Flattened Over Extremely Long Tail Domain Name"......
or for newspapers who think I was in the wrong...
"Domain Squatter Squashed"
Anyway I digress.......
I followed up her abusive phone call with an email stating that if I was threatened with violence again I would take the matter up with the police. I have not heard a word from her since.
Thanks for the support as it was the first time I have encountered this type of situation and it helped me to make a stand.
I may even consider the advice from HuskyPup.
"Get to a solicitor and stand up to her, she's obviously been using you, defend your position and also sue her for the past unpaid work you've done and your legal costs."
I was promised a share in this company for which I have a witness for. I have not seen the company accounts, but based on what I do know, this company would be worth between 1 and 3 million.