Business Assets Divorce Solicitors

Name: Purcell
Address: The Stables, Brooklands Farm, Newport Road,, Broughton, Milton Keynes, MK16 0HU
Telephone: +44 (0) 1908 693000

Question 1

Do I have to sell my business if I divorce?

Answer

No. You do not have to sell your business, and in many cases, the court will not require a sale if one party wishes to retain the company and can afford to buy out the other party's interest. However, the other party must receive a fair share of the matrimonial assets, which may be achieved through a combination of business buyout, other assets, maintenance, or a mix of approaches.

Question 2

Do I need a solicitor for business assets on divorce?

Answer

To ensure your interests are protected and you achieve a fair financial settlement, it is crucial to instruct an experienced Divorce Law Solicitor. Professional legal advice is essential if:

You own or hold a significant interest in a business
Your business is a substantial asset in your matrimonial finances
Your former partner disputes the value or division of your business interests
Your business has complex structures or multiple shareholders
Your former partner has instructed their own solicitor
You need advice on the tax implications of different settlement structures

Expert legal advice ensures your business interests are properly protected, and your settlement reflects the true value of your business.

Question 3

Do I need expert valuers, accountants, and a solicitor?

Answer

In most business cases, specialist input is essential. Business valuers can provide detailed reports on the true value of your business and advise on valuation methodology. Accountants can advise on the tax implications of different settlement structures and help ensure full financial disclosure. We work closely with trusted specialists and will advise you when independent reports are appropriate and proportionate to the complexity and value of your business.

Question 4

How do I protect my business in a divorce?

Answer

Protecting your business while achieving a fair settlement requires careful planning. Steps include obtaining an accurate valuation early in the process, considering whether you can afford to buy out your former partner's interest, discussing with your accountant the tax implications of different settlement structures, and ensuring any settlement properly reflects the business value and your future income needs. We work closely with business valuers and accountants to develop settlement strategies that protect your business interests while ensuring fairness. In some cases, structures such as pension contributions, deferred payments, or retention of certain assets can be used to achieve an outcome that works for both parties.

Question 5

How is a business valued for divorce purposes?

Answer

Business valuation requires specialist input. A business is typically valued using one or more of several methods: profit multiples (applying a multiple to profits or EBITDA), asset-based valuation (assessing the net asset value), discounted cash flow analysis (estimating future profitability and discounting to present value), or a combination of approaches. The choice of method depends on the type and size of business and the availability of information. Specialist business valuers are usually instructed to prepare a detailed report setting out the valuation methodology and conclusions. This becomes evidence before the court if the case is contested. Valuations can be complex and contentious, particularly where the business is owner-dependent or involves intangible assets.

Question 6

How much does advice on business assets in divorce cost?

Answer

The cost depends on the complexity of your business interests and whether expert reports are required. Our fees for advising on business assets form part of your overall financial settlement costs and vary from case to case. We offer an initial meeting to discuss and advise on your situation at a fixed fee of £300 inclusive of VAT, and then provide an estimate of likely costs after that meeting. We do everything possible to help our clients resolve matters through non-court dispute resolution methods to minimise cost and stress. Using an experienced family law solicitor and, where appropriate, business experts often saves money in the long term by helping you avoid serious errors and achieving efficient settlements.

Question 7

Is my business considered a marital asset in a divorce?

Answer

Yes. Any business owned or acquired during the marriage, or before but developed during the marriage, is likely to be treated as a marital asset. The court has the power to make orders affecting business interests as part of financial remedy proceedings. The date when the business was acquired, how it was funded, and the extent to which it was developed during the marriage are all relevant factors in deciding how it should be treated as there may be arguments about non matrimonial aspects of the business

Question 8

What about my business interests if I am a director or have a shareholding but am not the owner?

Answer

If you hold shares or a directorship in a business but are not the sole owner, your interest is still a marital asset. The value of your shares and any entitlements to distributions or management decisions are relevant. The court can order the sale of your shares or a buyout by other shareholders, but third-party consents may be needed depending on the business structure and shareholder agreements. Specialist advice is important because shareholder agreements often contain restrictions on share transfers that must be considered when structuring a settlement.

Question 9

What are my options for dividing a business?

Answer

The main options are:

One party retains the business and buys out the other's interest using available capital or by structuring the settlement to offset the business value against other assets
Both parties retain joint ownership, with the settlement reflecting the value and future income; this requires careful agreement on management and decision-making.
The business is sold, and the proceeds are divided This is rare.
A combination of approaches, for example, retaining the business but selling some assets or taking out a loan to fund a buyout

The right option depends on the value of the business, whether there is sufficient other capital to fund a buyout, the viability of joint ownership, and the wishes of both parties.

Question 10

What if only one of us owns the business?

Answer

Ownership structure is relevant but does not determine the outcome. If a business is owned solely by one party but developed during the marriage using joint efforts or matrimonial resources, it is likely to be treated as a marital asset. The value attributable to growth during the marriage would normally be shared, while pre-marital or non-marital value may be treated differently depending on the circumstances. Specialist advice is essential because the treatment of business assets is fact-dependent and can significantly affect the overall settlement.

Business Assets Divorce Solicitors

Expert, commercially focused advice from specialist business assets divorce solicitors on dividing and protecting business interests in divorce.

Why Purcell Solicitors for business assets on divorce?

Get in touch today to discuss your situation in complete confidence.

Get in touch today to discuss your situation in complete confidence.

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