How to protect your business during a divorce

The tireless dedication invested into growing a family business during, and even prior to a marriage can feel to be in jeopardy if the marriage then breaks down.

By Elspeth Kinder, partner, DWF

The impact of a relationship breakdown on a business can be devastating. Where a divorcing couple own and operate a business together, there are inevitable questions to resolve surrounding how the business will continue whilst ensuring both parties share fairly in the business that they may have spent many years developing and nurturing together.

It is essential that business owners don't panic, nor make any rash decisions if their marriage falls into difficulties. A divorce is a business deal like no other because of the emotions that so often play a huge part when a marriage ends. Taking good quality legal advice and acting upon it will ensure that an entrepreneur exercises the same objectivity and rational decision making as they would ordinarily apply to their business.

For those in business who are contemplating marriage or looking to pass their business to future generations, a pre-nuptial agreement is a valuable mechanism to protect and preserve the family business.