Dividing assets in divorce can be complicated, but when it comes to your business, you probably have even more questions about how to value it, how to release that value and who is entitled to what share.
This will likely depend on the nature of your business and how much it’s worth as well as each of your circumstances.
If you have business assets in divorce, it’s especially important that you get specialist legal advice so you can be sure your financial settlement is fair.
Whether you have a share in a partnership or if the business is run solely by one of you, our Family Law Solicitors can help. We’ll give you expert legal advice tailored to you and your family, so you can have peace of mind about the future of your business.
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- How is a Business Divided in Divorce?
This depends on your situation but it’s common for the person who runs the business day-to-day to keep it and give the other person more of your other marital assets to compensate.
Although a business it not a liquid asset in the same way your money in the bank is, when you get a divorce your partner can ask the Court to make money available to them from the business. Most of the time, the Court will consider a business interest as a matrimonial asset, but sometimes it won’t, for example if the business was own prior to the marriage.
Division of the business will also depend on if you own it jointly or if one of you run and own it alone. Before dividing the business, it needs to be valued to work out how much each of you are entitled to.
- How is the Business Valued in Divorce?
You should arrange a joint valuation by an independent accountant. The value will depend on:
- The business’s assets, such as buildings and stock owned
- Its earnings and the structure
- Whether it’s a limited company, sole trader or partnership
- Will I Have to Sell My Business in Divorce?
The Family Courts will try to avoid selling the business but every now and then, a sale can’t be avoided. For example if your divorce settlement would be very unfair without the sale of the business.
This is really rare and if you do need to sell your business, the Court will probably give you the opportunity to ‘buy out’ your former partner’s interest or give you enough time to find a buyer so you don’t lose out on any value in the sale.
You can find more information in What Happens to the Family Business in Divorce?
Get Expert Legal Advice
When it comes to your business, you need to make you sure you divide it fairly and properly in divorce, so your former partner can’t make a claim for it later on. But dividing a business in separation or divorce can be legally and financially complex, so it’s crucial you get the advice you need now.
Instructing an independent accountant and getting advice from an expert Family Law Solicitor means you can be sure your divorce will be as fair as possible.
Every business is different in the same way every divorce is. We will always tailor our service to your needs to make sure you get the best possible outcome from your divorce.
We understand how important your business is to you, so it’s vital that you put it in the hands of someone you can trust. At Simpson Millar, you can be sure we will always give a personal yet professional service to the highest quality.
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Protect the Future of Your Business
If you’re already going through divorce, getting expert legal advice will give the best chance of protecting your business.
And you’ll probably want to protect it in any future relationships. You can do this by getting a prenuptial agreement, which will set out how your assets should be divided if you ever divorce again.
Read about how a prenup helped to ring fence a Family Business.
Whether we helped with your divorce or not, if you want help ring-fencing your business before remarrying, we are more than happy to help.
Get in touch with our Family Law Solicitors today for an initial consultation and to discuss your options.
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Simpson Millar Solicitors are a national law firm with over 500 staff and offices in Billingham, Bristol, Cardiff, Catterick, Lancaster, Leeds, Liverpool, London and Manchester.