![\"How](\"https:\/\/www.just-family-law.com\/blog\/wp-content\/uploads\/2017\/10\/Pair_of_Merops_apiaster_feeding-1.jpg\")
<\/a><\/p>\n\u00a0 \u00a0 How To Protect Business On Divorce<\/strong><\/h3>\nA client came to see us here at Just Family Law<\/a>\u00a0<\/em>the other day. Let\u2019s call him Ted. He and his wife were fine, he assured me. But he wanted to know what would happen to his business if they split up. \u201cWould she get her hands on it?\u201d They both enjoyed the highlife: holidays in Florida, villa in Spain. But it was all down to him, wasn\u2019t it. There was no way she was getting a share.<\/p>\n\u201cIt all depends,\u201d I said.<\/pre>\n\u00a0 \u00a0 Is The Business Shared Out On Divorce?<\/strong><\/h3>\nI told him his wife, let\u2019s call her Sheila, wouldn\u2019t automatically get a share of the business on divorce. Or rather I should say \u201chis\u201d business, as he was keen to remind me. But there were questions I needed to ask him first. Was it a partnership? A limited company? \u201cNo,\u201d said Ted, \u201cI\u2019m a sole proprietor. Like I said, it\u2019s my business.\u201d<\/p>\n
It was doing brilliantly, he told me, never better.<\/pre>\n\u201cSo what is your business?\u201d I asked him. \u201cIT,\u201d he said. He is responsible for the IT systems of a number of large businesses. One\u2019s even a household name. He has an office full of \u201cyoungsters\u201d, or so he calls them. They run the help desk. \u201cDoes Sheila have a role in the business?\u201d I asked. No, she stays at home and spends the money.<\/p>\n
Each morning brings a van load of online purchases to their front door.<\/pre>\n\u00a0 \u00a0 Business Valuations On Divorce<\/strong><\/h3>\nI advised him Sheila would want the business valued if it had assets. Valuations can be controversial and expensive. Maybe his company accountant could provide a valuation? Sheila might agree it. But if she didn\u2019t, she would want a forensic accountant involved. Ideally they would jointly instruct one.<\/p>\n
If it had a significant value Sheila could receive a larger share of other assets. Such as the savings or the family home. This\u00a0would compensate her. And she’d have a hefty claim for maintenance too.<\/p>\n
That\u2019s if Ted\u2019s eye watering boasts of his income were to be believed.<\/pre>\n\u00a0 \u00a0 Dealing With A Family Business On Divorce<\/strong><\/h3>\nHe told me he had one final question. What difference would it make if he merged his business? A company was sniffing around. The managing director was planning his retirement. He\u2019d promised Ted a shed load of shares. And a role for Sheila, too. And she reckoned she could make an even better job of running the business than Ted.<\/p>\n
I advised Ted this could change everything. If the two of them ran it together she might want a share of it if they divorced. This applied to a limited company or to a partnership. But what would happen if the business couldn\u2019t be split? The options were for one or the other to buy the other out. Or they could sell the business. They would need a valuation.<\/p>\n
I reminded him about capital gains tax. \r\nThe full tax implications should be considered if they decided to sell.<\/pre>\nTed wasn\u2019t happy.<\/p>\n
I told him maybe it wasn\u2019t that bad. Perhaps he should consider a postnuptial agreement<\/a><\/em>. He and Sheila could decide how all their assets should be split. And this could include their business assets and income. Collaborative law<\/a><\/em>\u00a0could help if they had trouble agreeing.<\/p>\nHe said he liked the sound of that and would have a word with Sheila.<\/p>\n
\u00a0 \u00a0 How To Protect Business On Divorce<\/strong><\/h3>\nContact Family Lawyer Joanne Houston on 01962 217640 for an initial\u00a0free<\/em><\/strong>\u00a0of charge consultation on the question\u00a0How To Protect Business On Divorce.\u00a0<\/em>In this 20 minute session she will review your situation and how you can achieve your objectives.<\/p>\nJUST FAMILY LAW are specialist divorce and family lawyers. We offer\u00a0Pay as you go costs<\/a>. We offer\u00a0Collaborative law<\/a>\u00a0solutions tailored to your family\u2019s needs.<\/em><\/p>\nThe topics covered in this blog post\u00a0How To Protect Business On Divorce\u00a0<\/em>are complex. They are provided for general guidance only. If any of the circumstances mentioned in this blog apply to you, seek expert legal advice.<\/strong><\/p>\n
\u201cIt all depends,\u201d I said.<\/pre>\n\u00a0 \u00a0 Is The Business Shared Out On Divorce?<\/strong><\/h3>\n
I told him his wife, let\u2019s call her Sheila, wouldn\u2019t automatically get a share of the business on divorce. Or rather I should say \u201chis\u201d business, as he was keen to remind me. But there were questions I needed to ask him first. Was it a partnership? A limited company? \u201cNo,\u201d said Ted, \u201cI\u2019m a sole proprietor. Like I said, it\u2019s my business.\u201d<\/p>\n
It was doing brilliantly, he told me, never better.<\/pre>\n\u201cSo what is your business?\u201d I asked him. \u201cIT,\u201d he said. He is responsible for the IT systems of a number of large businesses. One\u2019s even a household name. He has an office full of \u201cyoungsters\u201d, or so he calls them. They run the help desk. \u201cDoes Sheila have a role in the business?\u201d I asked. No, she stays at home and spends the money.<\/p>\n
Each morning brings a van load of online purchases to their front door.<\/pre>\n\u00a0 \u00a0 Business Valuations On Divorce<\/strong><\/h3>\n
I advised him Sheila would want the business valued if it had assets. Valuations can be controversial and expensive. Maybe his company accountant could provide a valuation? Sheila might agree it. But if she didn\u2019t, she would want a forensic accountant involved. Ideally they would jointly instruct one.<\/p>\n
If it had a significant value Sheila could receive a larger share of other assets. Such as the savings or the family home. This\u00a0would compensate her. And she’d have a hefty claim for maintenance too.<\/p>\n
That\u2019s if Ted\u2019s eye watering boasts of his income were to be believed.<\/pre>\n\u00a0 \u00a0 Dealing With A Family Business On Divorce<\/strong><\/h3>\n
He told me he had one final question. What difference would it make if he merged his business? A company was sniffing around. The managing director was planning his retirement. He\u2019d promised Ted a shed load of shares. And a role for Sheila, too. And she reckoned she could make an even better job of running the business than Ted.<\/p>\n
I advised Ted this could change everything. If the two of them ran it together she might want a share of it if they divorced. This applied to a limited company or to a partnership. But what would happen if the business couldn\u2019t be split? The options were for one or the other to buy the other out. Or they could sell the business. They would need a valuation.<\/p>\n
I reminded him about capital gains tax. \r\nThe full tax implications should be considered if they decided to sell.<\/pre>\nTed wasn\u2019t happy.<\/p>\n
I told him maybe it wasn\u2019t that bad. Perhaps he should consider a postnuptial agreement<\/a><\/em>. He and Sheila could decide how all their assets should be split. And this could include their business assets and income. Collaborative law<\/a><\/em>\u00a0could help if they had trouble agreeing.<\/p>\n
He said he liked the sound of that and would have a word with Sheila.<\/p>\n
\u00a0 \u00a0 How To Protect Business On Divorce<\/strong><\/h3>\n
Contact Family Lawyer Joanne Houston on 01962 217640 for an initial\u00a0free<\/em><\/strong>\u00a0of charge consultation on the question\u00a0How To Protect Business On Divorce.\u00a0<\/em>In this 20 minute session she will review your situation and how you can achieve your objectives.<\/p>\n
JUST FAMILY LAW are specialist divorce and family lawyers. We offer\u00a0Pay as you go costs<\/a>. We offer\u00a0Collaborative law<\/a>\u00a0solutions tailored to your family\u2019s needs.<\/em><\/p>\n
The topics covered in this blog post\u00a0How To Protect Business On Divorce\u00a0<\/em>are complex. They are provided for general guidance only. If any of the circumstances mentioned in this blog apply to you, seek expert legal advice.<\/strong><\/p>\n