Spotlight
Family Law Awards 2020
Shortlist announced - time to place your vote!
Court of Protection Practice 2020
'Court of Protection Practice goes from strength to strength, having...
Jackson's Matrimonial Finance Tenth Edition
Jackson's Matrimonial Finance is an authoritative specialist text...
Spotlight
Latest articles
New rules for legal practice: guidance for legal professionals
The Ministry of Justice has published a page on the gov.uk website bringing together guidance for legal professionals on the new rules for various areas of legal practice. The page can be found here....
Book Review on Cohabitation: Law, Practice and Precedents (8th Edition)
It is 27 years since Denzil Lush first produced this book, some subsequent editions of which one has had the pleasure of reviewing for Family Law, and which, for some reason, does not figure as much...
Re AC (A Child) [2020] EWFC 90
(Family Court, Peel J, 11 December 2020)Private Law Children – s 8, Children Act 1989 – Inheritance - Jurisdiction Whether court had jurisdiction to authorise the mother to accept the...
Second reading in the House of Lords of the Domestic Abuse Bill
The Domestic Abuse Bill received its second reading in the House of Lords on 5 January 2021. The committee stage, where the bill will be scrutinised line-by-line, does not yet have a confirmed date....
Remote hearings in family proceedings – how is justice perceived?
The motion for the recent Kingsley Napley debate:  “This House believes remote hearings are not remotely fair” was carried with a fairly balanced 56% in favour and 44% against....
View all articles
Authors

Analysis: The impact of a divorce on a business

Dec 17, 2018, 09:02 AM
Analysis: The impact of a divorce on a business
Analysis: The impact of a divorce on a business
Slug :
Meta Title : Analysis: The impact of a divorce on a business
Meta Keywords : Analysis: The impact of a divorce on a business
Canonical URL :
Trending Article : Yes
Prioritise In Trending Articles : No
Date : Feb 19, 2019, 07:33 AM
Article ID :

When couples decide to divorce, aside from settling the arrangements for any children of the family - the next burning issue is how best to divide the family finances, according to Zoe Porter, partner and head of family law at Ashfords

The assets accumulated during a marriage may involve a business, which undoubtedly adds a whole new level of complexity. In some instances both spouses may be involved in the building or the running of a business. Equally both may wish to remain actively involved after divorce. In other circumstances, one spouse may have established a business interest prior to a marriage, or indeed inherited it. Either way often the main income of one or both of the parties is generated by those business interests.

How should the court deal with the business interest? Firstly, the court must establish what value should be attributed to the business. Secondly the court will then consider how to deal with that value along with all of the other assets available to be shared between the parties.

The value of the business can be a hotly disputed issue between the parties. Often there appears to be a decline in the business when a relationship breaks down - much to the suspicion of the other party if they are not actively involved in its day to day running. The value is therefore crucial to the negotiations and any order that a court is likely to make concerning the division of the other assets. The court will need to be able to consider the liquidity of the business so that it has in mind what could be withdrawn in order to pay the other party.

So how is the business valued? Where possible it is preferable to jointly instruct an accountant. A professional single joint expert valuation in this way is more likely to be accepted by the court then a value placed on the business by one of the parties. Experts assistance is also vital to understand the tax implications of any possible changes to the business structure as a result of a divorce.


Categories :
  • Articles
  • News
Tags :
  • Divorce
binary_2
Authors
Provider :
Product Bucket : Family Law (General)
Related Articles
Load more comments
Comment by from