Is My Ex Entitled To Half My Business And Is This Viable?
As matrimonial solicitors, we know that divorce may be one of the most difficult, confusing and stressful times in your life. When you divorce, you and your ex-spouse need to make a decision on how on how to separate your finances. This includes dividing up property, savings, investments, and pensions. If you have children together, financial arrangements will also need to be made to ensure that they are supported, which may include child maintenance payments.
Taking Business Interests into Account
The process of separating finances after a divorce is never simple, but taking business interests into account can add another layer of complexity. There are many things to consider when a business is involved, and determining some of the following points is a good place to start. For example, are you and your ex-spouse both involved in the business? Do you both wish to remain actively involved or, does your business only involve one of you, with the other lacking knowledge of the way it’s run?
Then there’s always the possibility that one spouse established the business before the marriage, or that it may have been a family business that has been inherited. Whatever the circumstances, however, there must be full disclosure of all assets including those jointly and solely owned. Commonly, the main income of either both, or one of the parties, is actively generated by the business. Following the divorce, therefore, it is essential that this income meets the parties’ needs.
How are Business Assets Divided when you Divorce?
Whether you run a limited company, a partnership, or you are a sole trader, the Family Court will take the value of your business into account when dividing up the assets between you and your ex-spouse. An independent valuation of the business may be required. It can be hard to extract cash from the business to pay the other party a lump sum without damaging the business and its ability to produce an income. Care needs to be taken in decisions relating to a business in a divorce.
As you can see, it’s not a straightforward process, and Vines Legal would strongly recommend seeking expert advice in order to successfully navigate you through the process. Although it’s a complex area, our matrimonial solicitors are well rehearsed in divorce proceedings that involve businesses. We’ll assist you at every stage, and help guide you through what can be a confusing and distressing time. Our experienced team will work with you to help ensure you understand the process, and work hard to achieve the best financial settlement for you.
If you’d like advice on ensuring your business is valued fairly and accurately, guidance on how to remove your spouse from the business if they are not actively involved, or advice on dividing the business, we can help. For immediate, friendly and professional advice, call us on 01246 555610 to arrange a free initial, no obligation consultation.
By Vines Legal on 18 Oct 2020, 12:51 PM