Generally, any business interest can be taken into account as one of the matrimonial assets for division on divorce or dissolution, whether you or your spouse act as a sole trader, a partner or a director – depending on the legal entity of the business.
We can advise on how the business would be taken into account when dividing matrimonial assets. This may depend on various factors.
Firstly, the business may need to be valued to achieve a financial settlement. Thist may be complicated, depending on the business structure and expert advice is essential before any costly valuations are obtained.
The business often provides an important source of income to one spouse and it is often common to leave the business intact. However, the other spouse may seek to be compensated with a larger share of other assets or some ongoing financial support.
You may wish to protect a business asset from a divorce, so you should seek advice in relation to this. A pre or post nuptial agreement may be appropriate, or we can help you understand other ways in which different business assets may be treated in the event of a divorce.