If you are getting divorced or dissolving your civil partnership, you will need to think about what will happen to your business, whether you are a sole trader, part of a partnership or own shares in a private or public company, or have other types of business assets such as employee share scheme interests.
Business interests are different to other kinds of assets because they often represent, not just capital value, but also a source of income and a bundle of practical day-to-day and longer term responsibilities.
Even though it is rare for a business to have to be sold as part of a divorce, if one of you retains your interest in the business, the other of you may need to be compensated by being given a greater share of other assets. The extent to which that is fair will depend on the whole picture, including your overall assets, the length of you marriage or civil partnership, when and how the business value was built up and the needs of both of you and any children you have. There may also be practical issues to resolve, such as how and whether the business will continue if you have until now both been involved in it.
This means that dealing with business assets upon a divorce can be complicated, and it is a good idea to get early specialist advice. It may also be necessary to have the business formally valued by an expert who will look at elements such as liquidity, goodwill and how much income can be generated.
Find out more about how financial settlements are reached, or the court process if you cannot agree.
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