Divorce? None of your business

Circumstances surrounding marriage breakdown are always different and the financial factors considered vary.  

Protecting the interests of your business, that so much time and energy has been devoted to building, is naturally of significant importance.  

Early legal advice is vital to being proactive in managing what can often be a difficult situation. This is all the more important when you are a  business owner. 

You should seek advice from an experienced solicitor, particularly as the complex financial issues involved require specialist advice.

Establishing a good relationship with the company’s accountants at an early stage is key particularly in identifying the value of your interest in the business; looking at issues in relation to liquidity and taxation, so that informed decisions can be made as to how it should be treated within proceedings. 

The court is likely to try to be as creative as possible and will want to avoid forcing the sale of a business.

If a pay-out to a spouse is required, there are numerous ways for this to be funded, including agreements based upon property, capital or other assets.

Where a business has been started prior to marriage, a pre-nuptial agreement could set out what would happen in the event of marital breakdown.  

Whilst not currently binding in the courts, prenups are gaining in popularity and influence and in certain circumstances, carry decisive weight.

From a positive angle, divorce often results in people focusing their time and energy more intensely on their work. 

Successful leaders often emerge even stronger following relationship breakdown, with renewed drive to improve their business, its turnover and profitability.

  • To read this feature in full and access further Lancashire business news, advice and analysis subscribe to Lancashire Business View magazine or join the LBV Hub from just £2.50 per month. Click here to subscribe now.