Divorce Involving Family Business
In the event of a family business being involved in a divorce, this often places strain on both the wider family and the business. To minimise disruption to the business, family life and the finances, it’s advisable to try and agree on things from the outset. We specialise in handling divorce proceedings which involve family businesses.
Family businesses comes in all types of structures and because of this they are often the most difficult to value. In today’s uncertain economic climate, it is vital that in the event of a divorce, the family business is protected as quickly as possible, so it continues to trade and stays afloat.
Free Initial Consultation
We understand that you’ll want to discuss your options and find out more about how we can help. We offer both appointments throughout the day and out of hours to accommodate our clients. We are happy to meet you at our offices across London, Essex or Kent. To find out more about free initial consultations, please call us on 020 3753 4667 or email
Issues affecting family businesses on divorce
When there is a divorce, the family courts will deal with the issues of the business. The courts routinely ask that businesses and business interests be valued as part of the financial disclosure exercise.
Valuing business interests is extremely difficult. There is a danger that an unrealistic amount of importance will be put on the value of the business when dividing up the family assets. If it is possible, the courts tend to leave the business owner with the business and compensate the other partner with a larger share of the other assets and/or maintenance.
The courts can be flexible but often they prefer not to leave one person with all the cash assets and another with assets that are tied up in a business.
Will the business have to be sold?
The courts can order businesses to be sold, but it is unusual for them to take this step. It is much more likely that a court will order the non-business owning spouse to have more of the property or cash owned outside the business or order maintenance to be paid out of the income from the business.
How is the family business valued?
The valuation of the family business is a crucial starting point since this will determine what is in the ‘matrimonial pot’ to be distributed between a divorcing couple. The valuation of the business will be based upon the current market valuation. Normally the valuation will be carried out by a single joint expert who will be an independent qualified accountant.
If the family business is to be split, one option might be to buy out your ex-partner’s share. One partner may retain ownership and pay the other partner maintenance, or savings could be used to make a lump sum payment. There are several possibilities and options to consider which is why we would advise you to make an appointment to see a divorce solicitor so that they can guide you through the process.
Professional advice
It is important for divorcing spouses to ensure the correct professional experts are instructed to deal with the family business on divorce. This not only involves specialised solicitors but also other professional experts to deal with valuation and taxation implications in order to ensure the business is not at risk going forward and at the same time achieving a settlement which is fair and reasonable for both parties.
Contact our Family Law Solicitors
The right solicitor changes everything. Anglo Law Solicitors provides expert legal advice on family law and divorce proceedings.
Speak directly to a Family solicitor now on 020 3753 4667 or complete our online contact form for your free consultation.
We serve clients across the following areas
London areas - City of London, Aldgate, Tower Hamlets, Spitalfields, Westminster, Kensington & Chelsea, Southwark, Bishopsgate, Canary Wharf, Islington & Highbury, Angel, Belsize Park, Hampstead, Swiss Cottage, Finchley.
Essex - Chigwell, Hainult, Woodford, Epping, Chafford Hundred, Chelmsford, Brentwood, Upminster, Grays.
Kent - Tunbridge Wells, Tonbridge, West Malling, Maidstone, Sevenoaks.
* “The court have a wide discretion when deciding what orders to make in relation to financial proceedings. In exercising their discretion, the court will take into full account the specific facts of the particular case in question. The court are guided by Section 25 criteria laid down by the Matrimonial Causes Act 1973. In deciding how the family assets are redistributed between divorcing couples or determining what happens to income generating assets, the court will always make reference to the guidelines of Section 25. Each case presented to the court is ultimately adjudicated on its own merits and the needs of any dependant children will always be the court’s main priority”.