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Business Assets and Divorce
We understand that you will be concerned to protect the business that you have worked hard to build up.
Historically the Courts were reluctant to interfere with a business on divorce, or make any orders that would affect the running of the business. However, this approach has changed in recent years. If you own a business and are going through divorce, the business will most likely form part of the “matrimonial pot”, to be considered for division, just like the other assets such as the matrimonial home, savings and pensions.
Items to consider are shares, dividends, and the business property.
It is therefore imperative that you obtain specialist legal advice at the earliest opportunity to protect your interests.
The business will most likely need to be valued, as part of the “matrimonial pot”. The normal approach will be for the business to be valued by an independent accountant, instructed jointly by both spouses.
However, it is necessary to look wider than the valuation of the business, and consider its place as part of the matrimonial assets as a whole to achieve a settlement. This means looking at the other assets available, and taking into account the risk inherent in business assets, compared to, for example, property or cash lump sums.
Recent cases before the Courts have seen Judges calling for family lawyers to take a more commercial approach when considering business assets upon divorce. As solicitors specialising in resolving commercial and business disputes, we have the advantage and wide experience of our Commercial Disputes and Divorce departments working together to consider how best to protect your position on divorce.
Please contact our team for an initial discussion about business assets on 0121 355 0011, or email Jennifer Brook.