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 a relationship breaks down, staying friends with your ex might seem an impossibility. It depends on individual circumstances and the reasons for separating, of course, but some people do manage to achieve an amicable relationship. The Duke and Duchess of York are perhaps one of the best-known couples who have remained friends despite divorcing after 10 years of marriage. Gwyneth Paltrow and Chris Martin remain on friendly terms after they ‘consciously uncoupled’ in 2014.
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.
When divorcing couples talk about splitting their assets they’re usually referring to the family home. Admittedly this will be a big part of the settlement but there could be a lot more up for grabs if you know where to look.
In our experience it’s rarely one thing that signals the end of a marriage. Rather than a monumental argument, it’s likely to be a gradual build-up of problems and issues over a period of time.
Having advised clients on separation and divorce over a number of years, we’ve compiled a list of seven tell-tale signs that a marriage is no longer working.
When it comes to deciding how wealth will be split in a divorce settlement, the law is quite clear that there must be no discrimination between breadwinner and homemaker.
Divorcing couples are becoming increasingly aware that it is in their best interests to obtain a clean break when they split up. This is to prevent any future claims on either party’s wealth or earnings and can be agreed at the time of divorce.
The cost of seeking expert legal advice can be such a concern for some people that they delay going to a solicitor until they absolutely have to. This is completely understandable, particularly at a time when your future financial security is so uncertain, but the issue of how you pay your divorce costs is something we can help you with and it shouldn’t stop you getting the support you need. The sooner you get expert legal advice, the better.
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.
1. Protecting your position
Before the divorce process can get underway our priority will be to protect your position by making sure your spouse does not dispose of or hide assets and avoiding setting any precedents that could reduce the amount of the settlement you ultimately receive. You should also think carefully before leaving the family home as this could make it more difficult to say that it should be sold or transferred to you in the longer term. If your spouse has moved out and you are left with the house and the children we will make sure you have enough money to pay your bills.