How will I know how much the business is worth?
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How does the court approach family businesses?
Business and divorce - Further information
Business assets such as shares in a limited company, interest in a partnership and business assets of a sole trader will be considered to be part of your relevant assets.
If financial remedy proceedings are issued, as a minimum you will be ordered to provide copies of the business accounts for the last two financial years as well as any documentation that is available upon which you have based your estimate of the current value of your interest, such as a letter from your accountant or a formal valuation, if available. You may also be ordered to provide further information such as company forecasts, profit and loss accounts, draft financial statements, incorporation documents, budgets, annual returns and so on.
It is rare that the court will order a business to be sold as a result of divorce proceedings, especially if doing so would remove the family’s income stream. However, the court does have the power to do so if necessary. Even if it is deemed necessary the court will usually try to minimise the impact such as by staging payments so as to allow you time either to come up with the money to buy out the interest of your spouse/civil partner or otherwise to find a buyer on the open market and avoid a firesale.
Your spouse’s assets will be considered as part of the relevant assets to be considered by a court for distribution between you. Even if you have had no involvement in the business you may still have a claim.
Contact our family lawyers today
Here at Child Law Partnership, our family lawyers have many years experience in representing clients with matters involving businesses, pensions and real estate during divorce proceedings.
We take time to listen to your situation and advise on practical solutions that will delier the best possible outcome. To arrange a consultation with our expert family lawyers, simply call us on 01256 630080.