Partner, Family Law
When you’re getting a divorce, all of your assets will be taken into account when sorting out your finances. This includes the value of the family business, which is considered to be a ‘matrimonial asset’.
All of your matrimonial assets need to be divided fairly between you and your former partner. This doesn’t always mean taking 50% of everything, but is based on your individual circumstances.
If one of you decides that you don’t want to take any part of the family business, then you don’t have to. But just because you may be more involved in the business than your former partner, it doesn’t mean they’re not entitled to a part of it as well.
We know that dividing all of your shared assets in divorce can be stressful and can cause a lot of animosity between you.
Our Divorce Solicitors are experts at reducing conflict in separation and we can advise you on the fairest way to divide your assets amicably in divorce.
We're rated‘Excellent’Yes, it’s likely you can claim a share of the business even if you’re not necessarily that involved in it. When dividing any of your assets, the Court will consider:
The business needs to be valued to determine how much each of you are entitled to. Again, this will depend on a number of things.
If you have shared business interests, either of you can arrange a valuation.
If just one of you owns the business, then it’s best to have the business valued by an accountant who should be instructed by both of you to complete a formal valuation.
The value will depend on:
If you don’t agree with the valuation that your former partner has provided, you can apply to the Court to get a formal valuation. Once the joint accountant has valued the business, they will let you know what the basis of their valuation is.
In most cases, the business interest will stay with the person who runs the business day to day, and the other divorcee will get a larger share of the other marital assets, or a structured settlement where you may be paid in instalments.
By compromising in this way, you can avoid the sale of a business and a loss of income for you as a business owner.
You should always get independent legal advice when considering a separation and it’s so important that assets are properly valued to make sure it’s a fair split. There will usually be Capital Gains Tax considerations to think about so the timing of the separation can be crucial.
Every business is different and so is every divorce. Our specialist Divorce Solicitors can advise you on a fair financial settlement based on your circumstances so that you get the right outcome for you and your family. Get in touch today.
The Decree Absolute is the final stage of the divorce process but it doesn’t officially end your financial commitments to your ex-spouse. In fact, if do not finalise your finances in a Court approved Order, then your ex is potentially entitled to make a financial claim against you at any point in the future. There is no cut-off date for this.
A Financial Order in divorce is a Court Order which sets out the financial arrangements between you and your ex-spouse. The Financial Order is approved and issued by a Judge, after which your agreement is legally binding in England and Wales.
Getting a divorce is a big decision to make, as it changes your life forever. A piece of legislation has come into effect – knowns as “No Fault Divorce”. It makes what has historically been a longer process much more straightforward and less stressful to do.
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