A Legacy Intact: safeguarding your family business in the event of divorce - Book - Page 21
F O R T H E C O U R T, T H E S T A R T I N G P O I N T I S
A 50:50 DIVISION OF ASSETS.
The English Family Court has wide
In relation to the overall split between
discretion when determining which
the parties, the law in England and
orders it should make and how to
Wales provides for very generous
divide up assets on divorce. This is not
awards to the financially weaker
just in relation to assets based in this
party on divorce. It is no coincidence
country, but in respect of a spouse’s
that London is known as ‘the divorce
worldwide wealth. The issues covered
capital of the world’. The starting point
in this guide therefore apply to family
where the assets are greater than
businesses globally as well as to
the parties’ ‘needs’ is that of a 50:50
those established in this country and
division of the assets. It is for the
the potential protections available are
financially stronger party to persuade
no less important if the business is
the Court that the other party should
located abroad. It is also not just in
receive less than 50% by arguing that
relation to matrimonial assets; English
some of the assets are, for example,
family law judges have the discretion
inherited, dynastic in nature or were
to
created before the marriage or after
re-distribute
assets
between
spouses even if they were brought
the parties separated.
into the marriage by one party or were
inherited or gifted by one party’s family.
As for the characteristics of the
shareholding itself, the starting point
If one or both spouses own shares
of the Family Court will be to regard
in a family business, these will be
shareholdings
considered as a financial resource and
business as illiquid in the sense
will be taken into account as part of
that, although shareholders could
the financial proceedings. The English
technically sell their interest, the
Family Court looks both at the effect
shareholder should not be expected
of any treatment of the shares on the
or forced to do so unless there is no
overall split between the parties and
other way of meeting the departing
the particular characteristics of the
spouse’s claim(s).
shareholding itself.
A LEGACY INTACT - EXPOSURE
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in
a
family-owned
