There are many preconceptions surrounding business interests/companies and divorce settlements.
The most frequent of these is the idea that the Courts will disregard the business when considering a settlement. TThe Courts do not disregard business interests and companies when it comes to divorce settlements. Whilst the Courts are loath to interfere with the smooth running of a business or change its ownership the business will, if material, form a key focus of the proceedings both in terms of its value and the income that it produces.
To properly advise clients, it is necessary to understand how the business is owned, what it is worth, what income it has provided and can provide in the future, for purposes of assessing the appropriate level of maintenance.
At Stowe Family Law, we are unique in having an in-house team of forensic accountants focused solely on supporting our clients through this process. Their role at Stowe Family Law is to assist with financial disclosures, investigate the accuracy of disclosures provided by the other party – particularly when there are business or offshore interests – and provide valuable assistance with financial settlement-related tax issues.
The financial matters surrounding a business (or interest in it) are frequently an area of huge disagreement between divorcing parties and therefore merit close scrutiny.
See our FAQ’s on businesses and divorce to find out more.
Read on to understand more about our approach to valuing a family business.