Divorce.co.uk

The UK's premier resource on divorce & separation

 

Downloads

The following downloads provide further useful guidance.

Business owners - preparing your case
download mp3 PDF | download mp3 Audio

Outside the business
download mp3 PDF | download mp3 Audio

Businesses on divorce - is the tide turning?
download mp3 PDF |

Business owners

The court's approach

Historically, the courts have tended to leave the business owner with the business, and compensate the other spouse with a larger share of the assets and/or maintenance.

Very often, this coincided with what the couple themselves wanted – particularly the business owner. 

The difficulty of this approach is knowing whether or not it is fair – it is difficult to value businesses, and they may or may not do well in the future.

More recently, since the case of Wells v Wells in 2002, the courts have been more alive to sharing risk:
  • why should one person have all the business risk, and the other keep more of the property and liquid capital – which is not so risky;
  • why should one person have assets which are easy to sell and liquid, and the other person have a business which is difficult to sell?
With this new approach, the courts are more willing to share the ownership of businesses after divorce – provided this is not a recipe for conflict. Much depends on all the other factors within the marriage and within the business itself.

 

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