IT is said you should never mix business with pleasure and the reason for this may become clear to anyone who works with their spouse and then goes through a divorce.
Practical problems can arise when husbands and wives work together and their marriage breaks down.
Will you be able to continue working together? If not, what’s best – a sale of the business or a transfer of it from your spouse to you? Negotiations on this issue can be very stressful and you may feel that your business life is being compromised.
Our Family Team recognises the importance of planning for your business on a personal level to minimise the impact of marriage breakdown upon it.
Some things to consider:
* Enter into a pre-nuptial or post-nuptial agreement to specifically address the position of your business within the wider financial situation.
* If you both work in the business agree and record who will retain the business on separation and any limits on the other upon setting up in competition.
* Use a pre-nuptial agreement to protect a business which has been inherited from an earlier generation or where other family members work within it.
* Review the structure of shareholdings, consider the articles, draw up a shareholders agreement and review a partnership deed to consider the eventuality of divorce.
At Howes Percival we work closely with our Corporate Teams and focus on practical solutions to reduce business risk in the event of marriage breakdown.
What’s important is to instruct lawyers who prioritise resolving issues rather than litigating, who will work with your accountants and who seek to understand your business and assist you in retaining it, particularly when marriage breakdown poses a risk.
For more information, contact Howes Percival on 01604 2304000 or visit www.howespercival.com
