Divorce can affect your business interests, so make sure you enlist expert legal support as early as possible
After being served with divorce papers, it is vital that you contact experienced family solicitors. The process of separating your businesses in the divorce process can be complex.
The key question regarding business and divorce, is how your business will be dealt with after the divorce is finalised.
Your business interests can take various forms including:
- Limited companies
- Stocks and shares
- Businesses operated by a sole proprietor
Your businesses will form a part of any financial claims in the divorce process.
Valuing your business
In the divorce process, it is vital to establish the value of your business interests. The courts will usually start with a study of the last two years’ accounts. They will also look at expert reports such as forensic accountants who may prepare a desktop valuation of your business. Depending on the nature of your business, there are various methods of establishing value. Essentially, the aim is to assess the appropriate value in an open market.
It is then prudent to establish how to deal with the value of your business as well as other assets available in the marriage.
Establishing the value of your assets is crucial for your solicitor to consider when negotiating on your behalf. It will help your solicitor to consider your liquidity, and whether your business can support any child and spousal maintenance to your former spouse. At Specters, we will look at your businesses’ historical performance, cash flow, risks and projected profits, and will advise you on your options in your financial settlements.
Sharing your business after divorce
In certain circumstances, you may be obliged by the court to share and co-own your business with your former spouse. At Specters, we believe that it is imperative to draw up the relevant agreement after divorce, which prevents either party from acting inappropriately. This ensures that the best interests of the business are maintained and protected.
At Specters, our specialist team of family solicitors can help you. We offer competitive rates to deal with your matter, and you may be eligible for our free initial 30-minute consultation, as well as a second 30-minute consultation for £50.
To get a divorce, you must be able to demonstrate that your marriage has irretrievably broken down. You must be able to prove the following:
- Your spouse has acted unreasonably;
- Your spouse has committed adultery;
- Your spouse has deserted you for a continuous period of two years;
- You and your spouse have been separated for at least two years and you are both in agreement to the divorce proceedings;
- You and your spouse have been separated for at least five years.
A standard divorce can take between 6-8 months, provided that it is not contested. If a divorce is contested then this timescale will be longer and it will depend on when outstanding issues are resolved.
If matters are uncontested, and you have already agreed with your former partner your divorce and financial arrangements, there will be no requirement for you to attend court. Your divorce will be processed based on your paperwork. If you not agreed on part or all of your financial arrangements, you will be obliged to attend Court.
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