When considering a divorce financial settlement, the value of any business interest is taken into account, whether the business was started jointly, with others or by only one of you either before or during the marriage. Some of the key issues that you will need to resolve are:
Identifying the correct value of the business and the value of the shares in that business;
Considering the preservation of the business interest and the resulting income whilst ensuring that both of you are fairly provided for;
How to deal fairly with the business taking into account its provenance (i.e. if it was an inherited business or jointly established);
Any likely tax implications
This area can be fraught with difficulty so it can be helpful to appoint a forensic accountant to produce a valuation report. This will take into account the size of the shareholding, any tax issues and consider the question of liquidity. Our family solicitors can help you with this process.
The person who built up the business does not necessarily have a greater claim to the assets of the business. The family courts have a broad discretion when dealing with assets on divorce, which includes a family business. However, the value of a business cannot be realised in the same way as other assets such as bank accounts or investments. The court will try to avoid making a court order for a financial settlement that results in the sale, break up or winding up of the business as long as the business provides a source of income to both parties.