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Businesses form part of the assets to be shared on divorce and are a central part of financial proceedings and discussions on divorce.
When there is a divorce, the family courts – rather than the commercial courts – deal with the issues of the business issues, whether it is a trading firm, a company or a partnership.
The courts routinely ask that businesses and business interests be valued as part of the financial disclosure exercise.
Valuing business interests is extremely difficult. There is a danger that an unrealistic amount of emphasis will be put on the value of the business when dividing up the family assets. This can lead to real problems in practice.
We recently teamed up with TheBusinessDesk.com to produce a supplement focusing on the issues facing family businesses.
>> Download a copy of the supplement here
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