Lauren Preedy – Senior Solicitor – Head of Divorce Team
Companies & Divorce
Special considerations for business assets within a divorce
Business assets, whether in the form of shares in a limited company, an interest in a partnership or LLP, or those of a sole trader, will be considered part of the relevant assets of the relationship alongside other property or investments.
Unlike land/buildings, bank accounts and investments, an interest in a business can be difficult to value and is usually, by its very nature, illiquid.
A business interest is not necessarily an asset that can simply be valued by an accountant and its value added to the balance sheet of other assets owned by the couple.
There are also cases when a business owner has been particularly successful and will want to argue that he/she has made a stellar contribution to the assets of the couple and that this stellar contribution should be reflected in a more lopsided settlement than might otherwise be the case.
Call our experienced Family Law Solicitors, Divorce Lawyers or Mediators now
Paul Jacobs FCCA – Finance Manager – Our in house accountant
Other possible complications:
But there are also other possible complications:
if the value business is added to the matrimonial balance sheet and the settlement reflects the value of the business in the capital division – but then periodical payments are then funded by profits from the business – does this mean that the recipient is receiving a double benefit from the same asset to the detriment of the other?
To what extent was the value of the business generated before the marriage and has the growth in its value since the marriage been more passive growth? Should this mean that only some of the value of the business should be treated as a non-matrimonial asset?
Are there other shareholders/partners/investors who have an interest in the negotiation and may wish to intervene? (If the business is a limited company – then it should not be forgotten that the legal company is a legal entity in its own right).
Is there actually a market for shares in a company?
If money is raised from a company either through withdrawing money or the sale of the company or shares in the company – then what are the tax implications?
Ian Walker – Solicitor/ Mediator/ Arbitrator/ Managing Director
Running a business is inherently risky and therefore how should a business be valued and its value be compared to safer assets such as property?
Have the couple can run the business together and do they wish to continue to do so? Or are there ways in which the business can realistically be split?
No two cases are the same and therefore it is recommended that expert advice is sought at an early stage.
Somerset woman: Domestic abuse story is a lesson
A Somerset woman has told of the abuse she suffered at the hands of her partner, after he was found guilty of assaulting her.
The woman has publicised her story as a warning to others not to ignore ‘red flags’ in relationships.
No-fault divorce and mediation: taking the pain out of divorce
It goes without saying that divorce can be a painful experience. Much of that pain can be caused by conflict during the process, leading to stressful contested court proceedings.
But it doesn’t have to be that way.
Even if you have agreed your divorce settlement, you still need a court order
With the advent of online divorce more and more people are doing their own divorce, especially since no-fault divorce has made the process considerably simpler.
And having dealt with the divorce themselves, many are tempted to go one step
No-fault divorce is great, but don’t forget the financial settlement
It is almost universally agreed that the introduction of no-fault divorce has been a good thing. Gone are the days when someone wanting a divorce has had to lay the blame for the breakdown of the marriage upon their spouse.
Marriage decline shows importance of cohabitants knowing their rights
On the 19th May the Office for National Statistics (‘ONS’) published its latest annual figures for the number of marriages that took place in England and Wales, for the year 2019.
The figures show a continuing decline in marriage rates.
Dorset council exposed woman to risk of abuse from father
When a local authority has concerns over the welfare of a child it will usually assign a social worker to get in touch with the family and investigate the matter.
When this happens, it is of course essential that the parents
Johnny Depp v Amber Heard: playing out your private life in public
For the last month the world has eagerly watched the Johnny Depp v Amber Heard defamation trial, as the two actors have exchanged lurid alleged details of their private lives.
Seeing two Hollywood stars fighting out such a battle in court
Should Olivia Wilde have been served with child custody papers whilst on stage?
When the actress Olivia Wilde was recently served with child custody papers whilst on stage it caused something of a sensation. Surely, said many, she should not have been served publicly, whilst she was working?
How Exeter City’s persistence is a lesson for all during family court proceedings.
Many congratulations to Exeter City F.C, who last week secured automatic promotion from League Two.
And the Grecians’ success came after five years of promotion near-misses, including being beaten in the final of the play-off in 2017, 2018
We are Recruiting x 3; Marketing Assistant, PA, Paralegal
We are Recruiting x 3; Marketing Assistant, PA, Paralegal The past 2 years have seen us achieve significant growth and we have firmly established ourselves as a leading regional family law solicitors practice. This year we will be joined by some additional team members who will further strengthen our team. First of these is Emma […]
Somerset Council failed to comply with adoption requirements
Somerset Council failed to comply with adoption requirements A recent High Court case has highlighted serious failures on the part of Somerset County Council to comply with the legal requirements when it has been acting as an adoption agency. Adoption agencies are organisations that work with prospective parents and children to assess, match, arrange and […]
Do I have to attend a MIAM (Mediation Information and Assessment Meeting)?
Do I have to attend a MIAM (Mediation Information and Assessment Meeting)? Anyone wishing to apply to the court about a family matter must first attend a Mediation Information and Assessment Meeting (commonly known by the acronym ‘MIAM’), unless an exemption applies. As the name suggests, the purpose of the MIAM is to provide the […]