Dividing business assets in separation and divorce.
Under UK family law, a business is firmly classified as a financial resource and a potential matrimonial asset.
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Businesses can be considered a matrimonial asset that can be divided during separation.
Under UK family law, a business is firmly classified as a financial resource and therefore a potential matrimonial asset.
Navigating how a court evaluates and handles it requires a deep understanding of both family law principles and corporate structures. Our specialist family lawyers can guide you through this complex legal landscape.
We understand that when a marriage or civil partnership breaks down and a commercial enterprise is involved the stakes can feel very high. For those that have worked hard to create it, a business is not merely a source of income; there is often an emotional element, and it may represent years of dedication, personal sacrifice, and pride.
There may also be third parties involved in its ownership who may feel entitled to a say in how business assets and ownership structures are reallocated, or how this impacts them.
We can navigate your business hurdles
Achieving a fair settlement where a business is involved means navigating some tricky issues. Our aim is to protect the viability and continuity of a business, as well as your interests within it:
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Valuation and Discounts
The court will require an accurate business valuation. We work with accountants to look beyond simple balance sheets to assess the true value of your business interest by reference to the market. If you hold a minority shareholding, a discount can be argued to reflect your lack of control and the limited marketability of those shares.
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Liquidity Assessments
A company may be worth millions on paper but possess very little cash. Family courts generally try to avoid dismantling a trading business, recognising that it provides the income stream keeping both parties afloat. The issue of liquidity needs to be explored to determine how much capital can safely be extracted without disrupting operations.
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Tax Planning
Transferring shares or extracting capital can trigger serious tax implications, such as Capital Gains Tax (CGT). An expert family lawyer ensures that any proposed settlement is structured to optimise available reliefs, preventing unexpected tax penalties from eroding your settlement.
Every business structure, whether a sole tradership, a partnership, or a limited company comes with distinct legal obligations, shareholder agreements, and articles of association.
At RWK Goodman we negotiate creative and robust alternative settlement structures. These often include offsetting the non-owner spouse’s business claim against other marital assets (like the family home or pensions), organising structured corporate buy-outs, or arranging staggered lump-sum payments over time.
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