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Divorce and business assets

Divorce can be a time of immense pressure, not least if there are business assets involved in the split. If you are a business owner, whether jointly with your spouse, jointly with a third party outside the marriage or alone, this can add an extra layer of complexity and negotiation to the situation. It is important that all assets, including business concerns are dealt with correctly and fairly in order to protect everyone involved.

 

Business assets are handled in a similar way to a family home, additional properties, vehicles, savings etc. in that they are considered part of the matrimonial resources. In the event of the divorcing couple being unable to reach consensus about what to do with them, they will be divided up and allocated by the courts. It is important, therefore to seek professional legal advice and support to ensure that you can retain the assets that you are entitled to and need to build your new life, post-divorce.

 

Getting in touch

 

For more information, please get in touch with us by using info@shortlands.co.uk or call us 02076299905 or book an initial online consultation.

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Our Family Law Services

Shortlands is a boutique family law firm with over 20 years of experience in dealing with the trials and tribulations of a divorce and all family law matters. As a result, we have become the first choice of family law specialists in London.

Divorce and Separation
International Divorce
Contested Divorce
Child Arrangements
Financial Settlements
Cohabitation Service
Pre and Postnuptial
Mediation Service
Collaborative Family Law
Wills and Probate
Domestic Violence
Commercial

How business assets are valued

Getting a business and its assets valued is not always straightforward and it is wise to seek an external specialist help to prepare the valuation documents. This is an important stage, as it provided unbiased, unequivocal proof of how much the business is worth. The process should be the same, whether the business is jointly owned by both partners or just by one party. Good practice is to engage a single expert to act for all interested parties to prepare a single set of valuation documents. This saves time and money and prevent ambiguity or disagreements around the finances. Business assets are valued by looking at property and current earnings, as well as plans for growth and potential future profit and income.

 

You are entitled to close a business, or open a new one, while you are in the process of getting divorced. The proceeds from any sale may be considered part of the matrimonial assets and taken into account when dividing the overall assets. If the business is jointly owned, both parties will need to give permission for its sale. You should seek professional legal advice if you are unclear about this process and how it will affect your divorce. Should you wish to ringfence any income from a new business started during a divorce process, it is best to seek specialist advice on the matter, as this can be complex to handle.

How business assets are divided

The starting point for most divorces cases is to divide assets from the marriage in a 50-50 split. This can be affected by weighting being added to either side to take into account such factors as childcare, healthcare, education and housing costs. The courts will also consider other aspects, such as anything that could adversely affect future earning potential. In some cases, non-marital assets can be included in this assessment to ensure that the outcome is fair and achievable for both parties.

 

Any agreements that the couple can reach outside of the courts will also be given serious weighting. Both sides are strongly advised to seek their own legal advice to ensure that their ownership or interest in the business assets is protected. The courts will need to issue a consent order to make any such agreement legally binding.

Speak to Our Family Law Experts

Our professional and highly experienced team of family lawyers can assist you in your legal matters with full respect, ensuring you maintain a private family life. For more extensive advice and information, please email info@shortlands.co.uk or call us 02076299905 or book an initial online consultation.

What our clients say about us

Thank you both for helping me through this sad process; you made it straightforward and much less painful than it could have been. I am of course relieved it is over. Excellent service, highly professional and humane.
Elena
I have found Shortlands an extremely professional and understanding firm. My solicitor Sian Whittaker has always explained proceedings in a manner that is easy to understand and the knowledge and advice given has always been supportive and invaluable.I feel that my work is being handled very professionally and they are very prompt with their replies to my questions. I would not therefore hesitate in recommending them.
Chief
During not only an extremely difficult time but also a complex divorce and settlement of finances, I found the staff at Shortlands to be extremely supportive and understanding. Shabana Walayat was in the main handling my case and I was always impressed by her quick grasp of the personalities involved and how she responded appropriately and effectively each time a particularly...
Sara Hayter
I have been in receipt of legal advice from Shortlands on a variety of matters for five years. This advice mainly concerned family law. Throughout this time, I have found the quality of the legal advice received to be strong. One matter did end up in court and Shortlands was able to appropriately defend my position with the court result going in my favor. In addition to the quality of the legal advice, Shortlands has a professional support team behind it. In summary, I do have genuine confidence in the firm both in terms of its legal advice and its service levels.
Nicholas Green
Dear Shortlands, A very big thank you for all your help regarding my case, brilliant service provided and I will be recommending your good name to all who seek legal representation.
Lee Kimberley
“I would like to convey my heartfelt thanks Shabana and her Team for their excellent work, professionalism and understanding, at a time when things were very stressful. I am grateful that my numerous phone calls and emails were always promptly replied to which was very much appreciated. I felt I had dedicated support and so much more. I would highly rectommend Shortlands Solicitors and would definitely use them again in the future. Many, many thanks again for everything, you were brilliant”
Michelle Fernandez
Shortlands attorneys led by Shabana Walayat are the best and most cost effective lawyers you could ever ask for. My divorce and custody battle has been complicated, long with a complex international dimension. My previous lawyers had been incompetent in grappling the various components, but Shortlands have exceeded my expectations and together we have won a number of judgments. Not only are they great lawyers with intellect and understanding of case law, but they have taken my case as if it were their own. I would not hesitate to recommend them for complex international cases.
Andrew Darfoor
I would unreservedly recommend Shabana Walayat to anyone seeking help with childcare arrangements after separation/divorce or the matter of relocation. For what was a traumatic time in my life, Shabana gave me reassurance and handled my case with great expertise. I felt she was in charge of the situation throughout. She helped me gain a clear picture of the legal procedures and it’s terminology. Shabana and her team always responded to my requests quickly and kept me in the loop of the ongoing developments. Her approach to her work as a lawyer I experienced as both – compassionate and highly professional. And that I am truly thankful for.
Juliana Marx
I have found Shortlands a very approachable firm in dealing with my separation and divorce matters. They have been professional; respecting my point of view and providing the best advice on each situation. It has been very easy to communicate with them via email and on the phone. I certainly don’t think I would have been able to go through the process without their expertise and I am very happy to recommend them.
Ana Maria Serrano
When I first called Shortlands solicitors I was very scared and extremely upset. It was an incredibly distressing time for me, but after speaking to Shabana, from the very beginning she was very understanding and quick to listen to my concerns, give me the correct advise and guide me in a very difficult situation, she was very professional and easy to talk, she answered all the questions. She was fully engaged...
Flor Barsallo

How Can We Help?

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We understand that every case is different and has its own complexities. Our experts are dedicated to guiding you through the legal process with tailored solutions which work for you.

Our Professional Team

Director

Shabana Walayat

Solicitor

Sian Whittaker

Solicitor

Carolyn Hanes

Solicitor

Johnathan Pease

Austin Chessell

Solicitor

Austin Chessell

Solicitor

Alastair Dobbie

Paralegal

Wentworth Cecil Gurney

Frequently Asked Questions

All business assets that were accrued during the marriage can be considered part of the overall marital pot of resources. This includes all business types, such as sole traders, partnerships, limited companies and public limited companies. Shares are normally considered in the same way as other business assets, but professional advice should be sought as to the implications of a divorce on the shareholders and the business.

Knowing how much business assets are worth is essential when it comes to calculating and dividing up the overall assets from a marriage. This ensures that the split is fair and provides enough for all parties to start their new life, post-divorce. It also helps any children or vulnerable people supported by the parting couple to be properly provided for.

Each case will be different, due to the individual factors involved. However, it is common for each spouse to receive a direct interest in the business. Sometimes, the value of the business assets are used to offset another asset. Or, the business can be sold and the value divided between spouses.

There are various ways of protecting business and other assets at the outset of a marriage or civil partnership. For example, a pre-nuptial agreement can be arranged to ringfence the business and its profits. Keeping business and household finances separate can also help simplify matters before and during the divorce process.

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