Divorce & Business Assets
Some people may think a business, such as a limited company, would not be considered in a divorce, but that is not the case as a business can be considered a marital asset even if only one spouse owns it. The Court will consider factors such as the length of the marriage or civil partnership when the business was established or acquired, each partner’s contributions to the business’s growth, and the needs of any children involved.
How is a business valued during a divorce?
The value of a business is usually assessed by an independent valuer or accountant who will examine the financial statements, assets, liabilities, and future earning potential, as well as external factors such as market conditions and industry trends.
How can you protect a business asset?
Courts are usually willing to leave business structures unaffected by divorce and enable them to continue as a going concern. As a result, whilst you may not have to sell or transfer the business, you may have to find money or other assets to provide for your spouse in lieu of their interest in your business. A business owner may be able to protect their business during a divorce if they have a pre-nuptial or post-nuptial agreement in place that clearly outlines the ownership and division of assets in the event of a divorce. However, it is important that the agreement is properly drafted and meets certain legal requirements to be enforceable.
Buying the other out of the business during a divorce
If one spouse wants to keep the business and buy out the other spouse’s share, they will need to negotiate a fair price for the share.
How we can help
Sorting out finances after divorce or the dissolution of a civil partnership can be complex, especially of there is a business involved, and you should take expert legal advice to protect your interests. Sterling de Zuk specialises in financial settlements and can offer legal advice to individuals throughout Cheshire. If your relationship has come to an end, we would encourage you to get in touch as soon as possible so that your financial situation can be assessed thoroughly.
Contact Mark Thomson on email: mark@zukdivorce.co.uk or phone: 0333 070 5651