Divorce can be difficult no matter the circumstances but when you run a family business together, there are even more complications. It’s important to consider what are the best options for you and your family business if your marriage comes to an end.
We deal with many cases involving SME’s and businesses. The impact on a business of a marriage breakdown can be significant:
- It can be difficult to focus on your work while you are dealing with the emotional fallout of your separation. This can affect financial performance, the value of the business and the level of your income.
- The business interest may well be an asset to be considered in the financial settlement.
- If the business is run as a joint venture by both of you, the future of the business will need to be decided
A common misconception in divorce is that a financial claim cannot be made once a Decree Absolute has been granted. In reality there is no limitation period for bringing a financial claim after divorce and there have been a number of very high-profile cases recently where financial claims have been brought many years after the marriage had ended.
A family business will differ significantly from the treatment of other assets that are valued and shared during a divorce settlement. The business often provides the family with a certain standard of living and the business and financial security of both spouses can be put at risk if matters are not handled in the right way.
When you are preparing for divorce the things you do in the first few weeks can have a huge impact on your financial future. That’s why it’s important to take advice before you make any decisions that could affect your long term position.