It is not uncommon for husbands and wives or civil partners to work together in a family business and a question often asked is “What happens to the business when the relationship breaks down?”
As of 6th April 2022 divorce law has changed drastically, thanks to the Divorce, Dissolution and Separation Act 2020. No-fault divorce is now law.
Therefore, the information in this article may be outdated. Please refer to our dedicated divorce page here for the most up to date information, or call us on 01202 499255.
There is no longer an assumption that a family business will automatically be protected on a divorce or dissolution and is treated as an asset of the family in the same way as the family home and all other assets jointly or solely owned by the parties.
Family Solicitor Heidi Cardoza advises on divorce and the financial matters which arise from a separation. She explains “Steps to protect business assets in the event of a divorce or dissolution such as discretionary trusts; shareholders’ agreements and pre-marital or pre-civil partnership agreements can be taken but the majority of these need to be entered into either prior to the marriage or civil partnership or prior to the divorce or dissolution proceedings commencing.”
For a free initial chat, please call 01202 499255 and Heidi or a member of her team will be happy to discuss any questions that you may have.
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