Many couples enter into business together for all sorts of reasons. It may be that both are involved in running the business, or more commonly one person has primary responsibility for the business and the other is a partner, director or shareholder for tax reasons. When that relationship breaks down the business will also be affected, and it is essential that specialist advice is sought as to how best to deal with the family business.
When entering into a business with your spouse or partner advice will be usually be sought from an accountant and tax advice will be given. Advice may also be sought from a solicitor about the business itself and how it is to be set up. The business plan will inevitably have an exit strategy and detail what might happen if the business fails. However, often too little consideration is given as to how any divorce or separation will affect the business. We are able to plan for these eventualities by entering into a pre-nuptial or post-nuptial agreement.
Disputes about the family business and problems that may be encountered are:
- One spouse withdrawing business funds, or dealing with business assets without consulting the other.
- One spouse refusing to resign as a partner, director or shareholder causing problems for the business.
- Disputes about who will continue the business or whether the business should be sold or closed down.
- Disputes about the value of the business, or whether funds can be raised to pay a settlement.
- Advice being sought by a co-director or partner whose other partner is going through a divorce and how they can protect their share in the business.
Please contact us for specialist advice on how to deal with business assets upon divorce or separation on 02380 713 060.