Companies & business partnerships

Many couples derive an income from a family business in which one or both parties work and have a shareholding. When a couple divorce or dissolve their civil partnership, the value of a shareholding may need to be established as a capital asset, in addition to assessing the income which it produces.

Dividing businesses during divorce

Our specialist team of solicitors have experience in dealing with a range of matters relating to divorce and businesses including the following areas:

• Understanding and analysing company accounts (balance sheet, profit and loss account and cash flow)
• Asking the right questions so that a comprehensive disclosure is provided
• Instructing forensic accountants to value the business both in terms of its capital worth and future income
• Assessing the right basis of a valuation, for example, on maintainable earnings (i.e. in the trading company) or on an asset basis (where the net realisable value of the assets is greater than the capitalised value of the dividends and earnings or on dividends alone.
• If the shareholding is a minority, what discount should be applied?
• Is the company akin to a quasi partnership? In which case, should any discount be applied at all?
• What is the value of the underlying assets owned by the company?
• Issues of liquidity.
• Tax implications. Without a proper understanding of the true value of a business, a fair settlement may not be reached.

Specialist business and divorce solicitors

The division of companies and business partnerships on divorce is a highly complex area.

Our family solicitors are specialists in this field of law and can provide succinct advice to help you navigate the division of your business assets on divorce.

We are well equipped to deal with cases of this type and where necessary, and our family law team work in conjunction with our Business Services Department which can be invaluable in particularly complex cases.

Get in touch with a member of the team for more information, advice and guidance.