Do you own a family business? If you do and you are going through divorce, you are likely to be incredibly stressed about what happen to your business. The business will no doubt be part of the financial settlement of your divorce but the good news is that there are a number of ways to cushion the effect that divorce will have on your business.
The chances of the court choosing to close a business as part of a financial settlement are very small. It may be the case that the profits from that business are needed to support the other spouse or any children involved, so closing the business could be disastrous.
Valuing the business is usually the most difficult part of the process. A business will often appear to be more valuable than it is which is why getting the right valuation is so critical. Given today’s trying economic climate, although a businesses looks to be performing well, a financial disaster could be waiting round the bend.
There are various ways in which you may wish to divide up the value of your business, some of which are detailed below:
• A one-off payment: if there is sufficient liquidity in the business, a one-off payment could be made
• Instalments: support could be paid to one spouse in instalments to spread out the effect of taking value out of the business
• Offsetting: the business owner could ask to have the business left in touch in return for taking a smaller slice of anther asset such as the matrimonial property for example.
• Share transfers: these prevent huge chunks of money being taken out of the business, instead encouraging one spouse to stay out of the daily running of the business whilst receiving a portion of any future revenues.
You may even be lucky and find out that you and your ex-partner can continue to run the business amicably after your separation, however this isn’t the most likely scenario of course!
Worried about divorce solicitors and the family business? Contact us today
Our divorce team fully understand the issues surrounding divorce on the family business – and the serious concerns many business owners have when going through divorce. Our divorce experts can help you safeguard your business assets and achieve a fair financial settlement.
And don’t forget, our team can help wherever you and your business are based. In addition to face-to-face meetings at the locations below, we also regularly run divorce and family law cases for clients throughout England and Wales – and overseas – using phone, email and Skype video. Some of our recent cases have involved clients based in in Afghanistan, the Far East, the West Indies and the Ukraine.
• Just call us now on one of the following numbers for FREE specialist advice.
FREEPHONE 0800 1404544
SALISBURY  422300
AMESBURY [01980 622992]
ANDOVER  364433
• Or email our team by filling out the contact form below