What happens to my business when I divorce?

Business assets are taken into account by the court when considering financial arrangements on divorce, so it can be a great cause of concern to the business-owning spouse what will happen to the business.

The first thing to say is that the court will, if possible, leave the business in the hands of the business-owning spouse, compensating the other spouse by giving them a greater share of other assets, if appropriate. The court will also not want to divide the business, if this means that the business is damaged such that it is no longer viable.

On the other hand it may be that some of the business assets can be safely realised in order to pay a lump sum to the other spouse. Another possibility is that the business can be used to raise funds to pay the other spouse.

Whatever, if you have an interest in a business you will have to declare it to the court before the court decides upon the financial settlement. This means disclosing recent accounts for the business, together with such other information and documentation that the court may require.

It will also be necessary to ascertain the value of the business. This may involve obtaining the opinion of an expert, such as an accountant. If the valuation cannot be agreed with the other party then the court will decide how much it is worth, on the basis of the evidence before it.

Obviously, sorting out what should happen regarding business assets on divorce can be a complex area, and if you would like further advice then Family Law Café can help. To contact us click the Contact link above and fill in the form, or call us on 020 3904 0506.

Image: Accounts book, by Alexander Baxevanis, licensed under CC BY 2.0.