Couple Collaborate in Divorce to Protect £5million Business
Divorce Case Study – Client Situation
After a 25-year marriage Mr. S, wanted a constructive financial resolution to the ending of his marriage. The divorce potentially threatened the million-pound business he had built up from scratch.
He understood that it was very expensive and unpredictable to get divorced in Court, so he contacted our Divorce Solicitors for legal advice.
Throughout the divorce, Mr S and his wife both wanted some control over how their matrimonial finances were divided.
Whilst neither could agree on what their financial settlement should be, they were both clear that they wanted to use the collaborative process to resolve their differences. They had two grown up children and although both children were independent, Mr S and his wife both wanted the divorce and the financial negotiations to be dealt with in a dignified manner.
Mrs S had little understanding of her husband’s business. Her initial financial demands, particularly for maintenance, were unrealistic. Mr S freely accepted that he had indulged his wife’s spending throughout the marriage as they had no financial worries given his high earnings. Since their separation, his wife had continued to spend lavishly and had built up debts. As they were now supporting two households this was not sustainable.
How We Helped
The assets in this divorce case were in excess of £5million, including a business. The case needed careful management and a settlement structured to make sure the business could continue to operate successfully after the divorce.
Through valuation evidence and an open and honest discussion, the business activities were properly explained to Mrs S. This helped her to have a better understanding of how the business operated and helped her to make more informed decisions.
Even though Mr S and his wife did have differences of opinion initially as to how their divorce financial settlement should be structured, they did want to work together with their Divorce Solicitors. By taking this approach, they could both make sure their needs were met in a way which did not impact on the future of the business and provided them both with a good standard of living.
Mr S and his wife came to an agreement in a series of four way meetings. This approach saved them the considerable cost of Court proceedings. In addition to the cost savings they made, they also concluded their financial negotiations in a fraction of the time it would have taken if they had gone to Court.
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.