Businesses are a complex area of matrimonial finances. Depending on the circumstances, a business or an interest in a business is likely to be considered a matrimonial asset.
It is difficult to put a value on a business becasue there are many different factors to consider. Some businesses, such as small sole trader enterprises, may not have a value attached to them at all. Matters become more complicated when there are other owners of a business to consider, such as partnerships. Where necessary, we will instruct an expert in the area of business valuations to carry out a formal valuation, dealing with all aspects of the business.
If you own a business it is possible to retain that business as part of a financial settlement. If you do so you will want to make sure that any interest and control that your spouse formally had are removed. For instance they may be a company director. To prevent any problems arising in the future our team will ensure that details such as these are tied down by making sure the correct provisions are included in any agreement.
Dismissing your spouse’s claims against your business in the Court Order, or transferring a share which your spouse may hold in the business, will be particularly important if the business becomes significantly more profitable in the future. Unless an Order, made either by way of Consent or the Court, provides for your spouse’s interest to be removed and their claim against it dismissed, your spouse could make claims in the future for a share of the profit or value.
Whether you are the spouse of a business owner or someone with an interest in a business, you should seek legal advice to ensure you take the appropriate steps. Our team will look at the options available to you to make sure you obtain the best possible solution.