Keeping your SME afloat during separation and divorce

SMEs are the backbone of our economy in the north west. Firms like these are often a family affair with couples, grown-up children and extended family working side by side. 

When things are going well, the ownership and passion that drive SMEs forward is a powerful force. If family relationships break down, things can rapidly deteriorate to the point where productivity is impacted. 

However, it doesn’t have to be this way. Here are my top tips for SME owners going through separation and divorce. 

Whilst my tips outline the ideal way to go about things, if your spouse is unwilling to cooperate with you then it’s imperative to seek early legal advice. 

Keep it professional

You may be tempted to end your spouse and/or in-laws’ involvement in the business immediately, but this can cause more problems than it solves. 

If your spouse, partner or extended family member is an employee, they have rights regarding the termination of their employment. Ignoring this can add complications to the process of reaching a financial agreement and create an atmosphere of acrimony and mistrust. If they perform a vital role in the enterprise, they may be difficult to replace at short notice.

Stop and think. Unless their actions amount to serious misconduct that would warrant disciplinary action, maintain the status quo.

Keep talking and be patient

There are many different ways of dealing with business assets on divorce. 

It is unusual for both spouses to continue long-term as employees and/or shareholders, but the process of bringing that connection to an end may be lengthy and subject to all kinds of considerations including tax, liquidity and your wider financial circumstances. 

Keep the lines of communication open during this interim period; it may last a long time.

No matter how amicable the situation, it can take many months to negotiate a settlement and commit it all to paper for approval by the court. 

Don’t expect a quick deal and make sustainable plans for what will happen day-to-day in the short to medium term.

Be transparent

Even when both spouses are shareholders or partners, it is not uncommon for one party to have a clearer idea of how everything works. 

In other cases, one party may focus on the finances while the other is developing contacts or concentrating on the core business.

Just because you are across the details does not mean your spouse is so whatever your role, don’t keep your spouse in the dark. 

This can cause a climate of suspicion and uncertainty, which can undermine attempts to reach agreement. 

Be forthcoming and comprehensive in response to requests for information and clarification. 

Take advice

There can be quick wins for CGT planning depending on the timing of your separation and divorce. Take early advice from a family lawyer and/or tax professional, ideally before separation has occurred.

  • 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.

Enjoyed this? Read more from Elspeth Kinder, JMW Solicitors

Latest news

1

Three weekly domestic waste collection considered in plans Waste recycling Blackpool

Three weekly domestic waste collection considered in plans

01 Jul 2025

2

Graham Engineering confirms sale to a2e Industries Graham Engineering

Graham Engineering confirms sale to a2e Industries

01 Jul 2025

3

Training 2000 celebrates 'Good' rating by Ofsted Training 2000

Training 2000 celebrates 'Good' rating by Ofsted

01 Jul 2025

4

Fox Group acquires J Fisher and Sons Colin Fisher, Paul Fox CEO and Gary Fisher.

Fox Group acquires J Fisher and Sons

01 Jul 2025

5

Beever and Struthers strengthen leadership team with new partners Dean Curtis and Joe Diston

Beever and Struthers strengthen leadership team with new partners

01 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

The Marketing Metrics that Matter – July 4
LBV Hub Seminars
04 Jul 2025 - 04 Jul 2025

The Marketing Metrics that Matter – July 4

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

08:30 - 11:00

Tri-Site Survey Equipment Showcase
unnamed (2).jpg.jpg
LBV Hub Seminars
09 Jul 2025 - 09 Jul 2025

Tri-Site Survey Equipment Showcase

Crow Wood Hotel, Burnley, BB12 0RT

09:30 - 16:00

Choose Chorley for Business - Talent Reimagined Business Breakfast
talentreimaginedbb.png.png
LBV Hub Seminars
10 Jul 2025 - 10 Jul 2025

Choose Chorley for Business - Talent Reimagined Business Breakfast

Strawberry Fields Digital Hub, Chorley, PR71PS

08:00 - 10:30

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers
Champagne-Jewellery 10 07 25_page-0001.jpg.jpg
LBV Hub Awards
10 Jul 2025 - 10 Jul 2025

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers

Blackburn Cathedral, Blackburn, BB1 5AA

18:00 - 20:30

Shaping Preston's future by remembering its past
1750160034867.png.png
LBV Hub Networking
16 Jul 2025 - 16 Jul 2025

Shaping Preston's future by remembering its past

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin