There was a time when if your business was organised and had great admin systems in place you stood a good chance of securing a sponsor licence from the Home...
Read more
My husband and I have been separated for over two years.
My husband and I have been separated for over two years. We have both met new partners and we think the time is now right to get divorced. I am however worried about taking this step as my husband and I run a shop together. Although we are separated it works well at work and neither one of us could afford to buy the other’s shares in the business, and if we did, how we would find other work as we are so used to being self-employed. I think my husband feels the same as me. If we get divorced, would we have to divide the business at the same time as finalising the divorce proceedings?
Public Answer
Thank you for your enquiry. We would recommend that at the time of the divorce proceedings you reach a financial settlement with your husband. The financial settlement can be sorted out by agreement with your husband and the agreement can then be converted into a financial court order.
As you have separated amicably from your husband and anticipate being able to enjoy a good business relationship with him then one option would be to continue in business together. This could be achieved after you divorce by the preparation of a financial court order and shareholder agreement. These documents could put measures in place to protect both of you from future fallouts.
Another option is to explore one of you buying the other’s shares in the business. You mentioned affordability of this but with expert advice you may find that this option is affordable through one of you getting more of the other assets, such as the equity in the family home or pension. Alternatively, it may be possible to raise money on the value of the business so one of you can get a business loan to buy the other’s shares.
Divorces involving family businesses and shareholdings can be complicated so it is important that you get expert advice.
You do need family law advice on the business and your financial settlement options. We would therefore ask you to call us on 0203 959 9123 to arrange an appointment to discuss how we can help you. Please call us.
[This question has been successfully answered by our lawyers in a private e-mail]