We appreciate that sorting out finances upon divorce can be stressful and even more so if there are business interests to consider.
The primary factors when considering a financial settlement upon divorce are identifying and valuing the resources and then deciding how they are to be distributed to best meet both parties’ future needs.
A business or business interests are a resource which will need to be accounted for in any financial divorce settlement and if necessary, can be used to meet future needs.
It is important that the business is accurately valued, with it’s structure, the income streams it produces and anticipated future profits being properly considered; together with how the value of your interest may be realised.
Wherever possible, the Family Court prefers to preserve the business assets for the business owner and compensate the other spouse with a higher share of the other, more liquid assets, to offset this. However, if necessary, the Court does have the power to order a sale of the business.
It is appreciated that every business is different, and each case will be dependent upon its own circumstances. However, what is important in every case is that you seek independent legal advice to ensure that your business interests are protected.
Here at Awdry Law, our experienced family law practitioners regularly advise clients about the impact of separation/divorce upon their business interests. If this is something you are concerned about, click here to contact us and arrange your free, initial consultation.
