Any divorce solicitors on here?
Discussion
Hi,
I am posting this for a friend in case there is anything that he is not doing that he should be. He owns a small business with quite a high stock value and site. His wife left him last year for no reason other than had had enough after being married for around 20 years. Two kids both over the age of 17 but are both still living with him.
The family home is being sold and she will be getting her share of that. Now she wants her share of his business, his parents own the site the business is run from and the business isn't trading well in the current climate.
Is there anyone he should speak to, is he going to get f**cked over by her?
Cheers.
I am posting this for a friend in case there is anything that he is not doing that he should be. He owns a small business with quite a high stock value and site. His wife left him last year for no reason other than had had enough after being married for around 20 years. Two kids both over the age of 17 but are both still living with him.
The family home is being sold and she will be getting her share of that. Now she wants her share of his business, his parents own the site the business is run from and the business isn't trading well in the current climate.
Is there anyone he should speak to, is he going to get f**cked over by her?
Cheers.
I am no solicitor but if she has supported him, as in took time out of work to raise their children while he ran the business, then I would think she potentially has an argument to stake a percentage of the business. So in answer to you question "Yes".
Happily be told I am wrong though.
Happily be told I am wrong though.
Unfortunately, yes, he's about to get f
ked over, unless he can come to some arrangement...
Not my words... but from here http://www.graysons.co.uk/news6.html
One of the many reasons I shall not be getting married!
Q. What will happen to my business if I get divorced?
A. Recent case law demonstrates that there is no longer an assumption that a family business will automatically be protected on divorce. Every case is different and many factors have to be taken into account, but a family business will be treated as an asset of the family in the same way as the family home and any other assets.
One of the principles in divorce cases is that the family’s assets should be shared on a basis which reflects the respective contributions of the parties. However, an important point for business people to understand is that the court assesses that the contribution of the ‘homemaker’ is no less significant than that of the ‘breadwinner’. This means that a spouse is likely to be entitled to a share of the value of the business even if they had no direct involvement in it.
The court has to decide on an appropriate division of assets and this will be tested against the yardstick of equality, which for most cases will be a 50/50 split.
In the recent case of Sir Martin Sorrell, the advertising guru, he successfully argued that he had made a ‘stellar’ contribution to the family’s £100m wealth and was awarded 60% of the family’s assets. However, this was very much an exceptional case and if someone so successful gets only 60% of the assets, then most business owners will get less, and certainly won’t get very much more than half.
This does not mean that the business will have to be sold, and where the business is producing sufficient income to support the family (and perhaps meeting the running costs of two households), the court will be reluctant to enforce a sale as that would cut off the income stream.
Many methods of achieving a settlement are available. These range from disposal of business assets to regular maintenance, and in cases where one party wishes to maintain sole ownership of the business, transfer of non-business assets such as the matrimonial home may be an option.
ked over, unless he can come to some arrangement...Not my words... but from here http://www.graysons.co.uk/news6.html
One of the many reasons I shall not be getting married!
Q. What will happen to my business if I get divorced?
A. Recent case law demonstrates that there is no longer an assumption that a family business will automatically be protected on divorce. Every case is different and many factors have to be taken into account, but a family business will be treated as an asset of the family in the same way as the family home and any other assets.
One of the principles in divorce cases is that the family’s assets should be shared on a basis which reflects the respective contributions of the parties. However, an important point for business people to understand is that the court assesses that the contribution of the ‘homemaker’ is no less significant than that of the ‘breadwinner’. This means that a spouse is likely to be entitled to a share of the value of the business even if they had no direct involvement in it.
The court has to decide on an appropriate division of assets and this will be tested against the yardstick of equality, which for most cases will be a 50/50 split.
In the recent case of Sir Martin Sorrell, the advertising guru, he successfully argued that he had made a ‘stellar’ contribution to the family’s £100m wealth and was awarded 60% of the family’s assets. However, this was very much an exceptional case and if someone so successful gets only 60% of the assets, then most business owners will get less, and certainly won’t get very much more than half.
This does not mean that the business will have to be sold, and where the business is producing sufficient income to support the family (and perhaps meeting the running costs of two households), the court will be reluctant to enforce a sale as that would cut off the income stream.
Many methods of achieving a settlement are available. These range from disposal of business assets to regular maintenance, and in cases where one party wishes to maintain sole ownership of the business, transfer of non-business assets such as the matrimonial home may be an option.
Even though my ex wife never even stepped through the door of my business and had her own very well paid career her lawyers managed to get an order for a forensic accountants valuation in the high court. That was after she had had half of everything else she wanted and had settled, they went after the business on the basis that they didn't believe the numbers on the form E or the statutory accounts.
My advice would be to get the business in the pot as quickly as you can, otherwise the lawyers will make fortunes out of it and the settlement would end up being the same.
My advice would be to get the business in the pot as quickly as you can, otherwise the lawyers will make fortunes out of it and the settlement would end up being the same.
Edited by Adrian W on Sunday 14th February 10:26
Ed FM said:
How can you take a percentage of a business earning nothing? The only assets are vehicles yet to be sold and money has been borrowed to buy them. When you say get the business in the pot what do you mean?
Everything that they both own goes into the pot then gets shared out (less the lawyers fees) when it comes to a company they will value it.Gassing Station | The Lounge | Top of Page | What's New | My Stuff