If you go through a separation or divorce, it’s a naturally stressful time with so many pressing matters to consider – but business owners need to be mindful of their business at this time also or there can be consequences.
It may not be priority for you if your family breaks down, as you will understandably want to resolve serious issues such as whom the children live with and who keeps the house. However, it’s important to appreciate that your business would be included in the list of assets available for division between you and your spouse.
Family Law Act And Business
According to the Family Law Act, a business is part of the property collection that you and your spouse will divide between you upon separating or divorcing.
It’s not as simple as thinking it’s your business so you’ll keep it as part of the settlement. Depending on the value of the business, this can impact on the division of other assets to be shared.
Your Business As Part Of The Shared Properties
To be considered as part of the property portfolio that you and your spouse will divide between you, you need to have it valued.
The valuation can be done in one of two ways:
- You and your spouse agree on its value
- The business is professionally valued
The value of your business depends on a number of factors, including:
- Its structure
- Whether a buyer would want the business without your continued involvement in it
- The resale value of assets and equipment held by the business
- The value of the brand or goodwill
How We Can Help With Your Business And Separation
If you’re struggling to agree on the value of your business, we’d advise having it professionally valued – this way, both you and your spouse will know its value and how best to divide this and the other properties between you both.
We’ve helped many individuals after their relationship has broken down, to divide properties in the fairest way. We can advise you on the worth of your business and help you to navigate your separation or divorce in the most straightforward and least stressful way.
To find out more about our family law services or to speak to one of our specialist solicitors at our offices in Chester about the value of your business and how best to incorporate it in the property pool to be divided between you and your spouse, contact us on 0800 988 3674 or email advice@bartletts.co.uk
