Divorce is difficult, bringing with it emotional, financial and practical problems. When one, or both of a married couple own a business, then things get more complex. It is even more critical than usual to appoint specialist divorce solicitors. But how do the courts approach a branch of business assets? The overriding principle in divorce is that each couples contribution divides fairly the family’s assets. But when it comes to business assets, the courts have shown a dependence on the precedent of a 50/50 split between spouses. When dealing with business assets, the court can award a 50/50 split irrelevant of contribution to the business itself. This is a frequent occurrence where one spouse works and the remains at home. It’s assumed by the court that the homemaker party has sacrificed their career by security received from the business assets in question. In addition, but the not working party is assumed to have supported the working party in their business ventures.
In situations like this, the court will not enforce a sale of the business to fulfil the terms of the split. If the business is providing a income, large enough to support the ex-spouse and any family involved maintenance money will be sought instead. Selling individual assets in the business while retaining it can fulfil the claims of a divorce. You should get a evaluation of the business assets that the court can negotiate a settlement. This valuation will have to demonstrate more than just the present balance on the books; it will need to show the profitability of the business, and it’s possible earnings. The evaluation of the business should be done both as a going concern if it were to be liquidated and what it would make. The court will use this information in connection with all the usual factors it believes during divorce proceedings. If you are looking to learn more about divorce solicitors poole, view the previously mentioned website.
Once the evaluation information is obtained, before taking the issue to a 21, both parties should attempt to enter discussions. Negotiations can occur via mediation or collaborative law. Resolutions achieved like this can save both parties money spent on court fees and legal costs. If your business is pre-owned before the marriage, then it’s advisable to seek protection through a prenuptial agreement or pre-civil partnership agreement. However, if the process of making your business happened during your marriage, there are actions that you can take to ensure that each party’s rights are described. Examples of these measures are developing a shareholder agreement or forming a discretionary trust. These agreements may include directions to the way business assets will be divided upon divorce. If you are contemplating implementing any of the aforementioned protective measures, it is a good idea to seek legal advice from specialist divorce solicitors before taking any actions.
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