Protecting family wealth on relationship breakdown

James Prothero Associate Mills & Reeve LLP
Frances Bailey Principle Associate Mills & Reeve LLP

Owners of a family-run business will naturally wish to consider how best to pass on the assets they have worked so hard to generate and how specific assets derived through their business can be passed on to the next generation. A key consideration often neglected by family business owners when considering passing on wealth is the inherent risk posed to the family's wealth by the possibility of a relationship or marriage breakdown within the branch of the family that receives the assets.

This article describes ways that owners can pass on their wealth to future generations but also considers the discretionary nature of the Family Courts in England & Wales and explores for example how and why the Court might decide to invade non-matrimonial property to meet one party's needs. It also explores certain options available to family business owners to protect as far as possible the wealth that they choose to pass on such as making funds available through properly documented loans settling assets on...

Read the full article here.