How to Handle a Divorce While Running a Family Business?

Family-owned businesses account for the majority of enterprises based in the United Kingdom. There were 5.1 million family-owned firms in the UK in 2018, accounting for 87.6% of the private sector. Relationship breakdowns, such as a legal separation or divorce, can easily hurl these successful companies towards failure.

Employing a professional family lawyer who knows how to manage divorce cases involving a family-owned business and its assets can enable the business to survive and run smoothly throughout this difficult time. Keep reading to learn how you can handle a divorce while running a family business together with your partner.

The Importance of Prenuptial Agreements

A prenuptial agreement can stipulate which assets should be recognized as personal assets and what must be recognized as joint assets. If a family business stake is regarded as a joint asset and thus susceptible to the division of property in a divorce, a prenup can specify how it will be shared if the couple divorces.

If the couple didn’t sign a prenuptial agreement, they may be able to sell their business shares after the divorce.

Keep Sharing Ownership Of The Company

Co-owning a firm with an ex may be unappealing to a certain individual. The structure, though, may succeed for both the husband and wife. If you come up with a common ground and can avoid clashes, you both can smoothly run the business even after separation. You and your ex both get to maintain your stake in the company, so none of you needs to sell.

However, if you can’t establish a friendly business connection, co-ownership won’t work.

Purchase Your Ex-Part Spouse’s Shares Of The Company

From a financial and legal standpoint, your company is just another property that you both hold together, and it will be regarded as such. If you don’t want to have your ex-spouse share the business with you, it should be separated so that you get a fair portion.

You can either acquire your ex-spouse’s share of the firm or buy out theirs.

Sell The Company

Selling the company and splitting the profits with your ex-spouse is a good idea. You and your partner must employ an appraiser to do a company appraisal so that you can establish a suitable market value. If your firm quickly sells, you’ll have enough cash to do whatever you want with it.

Co-sharing a business might affect divorce proceedings. Wembley Solicitor’s family lawyer in London can carefully evaluate your company’s operations, guide you with the property division, and represent you in court if necessary. Our experts have made getting a legal separation in Middlesex UK easier.

Reach out to us today by emailing info@wembleysolicitors.com.