How is a business treated in a divorce?
Richard England, divorce solicitor Sutton Coldfield
How is a business treated in divorce? I’m often approached by business owners who are separating or divorcing and their main concern is that they are going to lose the business because their spouse or partner says to them that they are going to, to coin a phrase, “take them to the cleaners”. My job is to explain to them and to reassure them that that isn’t going to happen and rarely does it happen because first of all the Courts don’t want to dismantle a business or take that away from somebody but equally there are ways of dealing with the value of that business by offsetting it against other assets in the marriage for example, the family home, savings, or any other assets that there may be.
The other important point is that the ex partner or spouse can’t have their cake and eat it, they can’t argue that they want to take into account the business owner’s income because the income itself comes from the value of the business. So it is important to be clear that you can’t double account, you can’t say I want some of the value of the business and I want some of your income. So it’s important that a business owner going through a divorce or separation obtains specialist advice from a family lawyer.