Divorce, Separation & Business Assets

Expert advice on divorce and separation involving business assets. Our family law solicitors can provide pragmatic, tailored support to help you protect your interests and achieve a fair outcome.

Talk to one of our friendly and experienced team on 01442 872311

Separating can be particularly challenging when business assets are involved. Whether you own a small family-run enterprise or a larger company, navigating the division of business assets requires expert legal advice.

How are business assets treated on separation?

In divorce cases, all financial circumstances are considered, including business assets, incomes, and earning capacities. While the starting point for dividing assets is often equality, fairness and individual needs may dictate adjustments. For example:

A business that has been in a family for generations may not be subject to equal division.
Courts usually prefer to leave businesses intact, especially when they are the primary source of family income.
If a business has multiple owners, the Court is less likely to order its sale or division to avoid disruption for co-owners.

If you’re unmarried and have business interests with your partner, a separation can be complex and in the event of a dispute, the court will likely treat the situation as a commercial dispute.

Machins’ family law specialists work alongside our inhouse commercial lawyers to address complex business arrangements. From protecting generational businesses to advising on shared ownership, we provide tailored, practical solutions.

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Valuing a business on separation

Accurately valuing a business is a crucial step in resolving financial arrangements. In most cases, an independent accountant (or in complex cases a forensic accountant) will evaluate the business using methods tailored to its size and structure. These often include:

Reviewing the last three years’ profits and forecasts.
Assessing sustainable profits, surplus capital, or borrowing capacity.

Valuations can be particularly complex in cases involving partnerships or multiple shareholders. Early advice ensures clarity and minimises disputes. Where cooperation exists between spouses, it may even be possible for both to continue working in the business, supported by new partnership or shareholder agreements.

Some businesses don’t require a full valuation if the reality is the business has limited assets and the business is an income-producing asset only. Our experts will ensure that the right approach is taken early for your business.

Speak to one of our expert solicitors today on 01442 872311 to discuss how you can protect your business assets on separation or divorce.

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Frequently asked questions

A business valuation typically involves independent accountants reviewing financial records, such as profit histories and forecasts. Machins can connect you with trusted professionals to simplify this process.

Once a business is valued, on a divorce the Court has several options:

Order a sale: Though less common, this can occur in certain circumstances.
Transfer shares: Shares may be transferred between spouses, subject to shareholder agreements.
Compensate using other assets: The spouse less involved in the business may receive a larger share of non-business assets such as property, pensions, or investments.
Raise funds through the business: If the business has surplus capital or borrowing capacity, it may be possible to fund a settlement without selling or dividing the business.

Where co-owners are involved, we work to minimise disruption and address the concerns of all parties.

If you’re not married there may still be commercial issues to resolve if you have a shared business but you no longer want to work together after separating.

Being an all-service firm means that we have specialist commercial lawyers on hand who can advise and assist alongside our experienced family law team. Where there is a business involved, it is likely that commercial advice will be required at some point in the process and at Machins we can cover all bases.

If you’re a business owner considering marriage, moving in with a partner, or setting up a family business, it’s worth exploring measures to safeguard your business. Options include:

Pre-nuptial agreements: These can help protect your business assets, provided they are fair and meet your spouse’s needs.
Post-nuptial agreements: These may also be an option after marriage and may be an option to consider if you’re looking to bring your spouse into your business, perhaps on accountancy advice.
Cohabitation agreements: These can set out financial arrangements for couples who live together and could cover business arrangements if you intend on setting up or running a business together.
Ongoing financial planning: Maintaining clarity about business ownership and finances can reduce complications later. Shareholders agreements entered into at the time of a business’ conception can save time and money if business partners have a romantic separation in the future.

Our team of family law and commercial legal experts collaborate to protect your business interests while ensuring compliance with legal and financial requirements.

In cases where a business is owned by several people, the Court is less likely to order a sale or division that disrupts other owners. However, such cases can create anxiety for co-owners. Our solicitors work closely with all parties to minimise disruption and find a fair solution.

In many cases, the Court prefers to keep the business intact, especially if it’s the family’s main income source. Compensation through other assets or maintenance payments is often used instead, but this will depend on the value of the business and the value of the other assets owned by the family.

Yes, smaller businesses may face unique challenges, such as fewer resources for raising capital. Machins understands these complexities and provides bespoke solutions for small business owners.