A Legacy Intact: safeguarding your family business in the event of divorce - Book - Page 8
The financial consequences of divorce
consider in order to limit their exposure
for
be
in the event of relationship breakdown.
underestimated. In our experience, until
Here, we discuss the role of pre- and
it becomes an issue for them, many
post-nuptial agreements, using trusts
of those involved do not appreciate
and
the breadth and depth of the English
(‘FICs’) as vehicles for holding shares
Family Court’s powers to make financial
and corporate governance.
family
businesses
cannot
Family
Investment
Companies
orders on divorce. It is vital that family
businesses
FOR THE
B
E
S
H
O
PE
T
appropriate
While relationship breakdown is never
protocols and procedures to try to
easy for anyone involved, families who
protect
reduce
are able to discuss these issues in an
the stress and disruption caused by
open and upfront manner at an early
relationship breakdown. If they can plan
stage can expect better outcomes
ahead and put these building blocks in
if such a circumstance does arise.
place, family businesses are likely to
Should the worst happen, business-
reap significant benefits in the long
owning families who are well-prepared
term.
can minimise and manage risks and
family
the
assets
and
R
PA
W
P
E
O
RS
T.
use
RE
FOR
E
TH
continue to focus on their core aims,
In the series of chapters that follow, we
and pursue sustainable growth for
consider the impact of claims against
future generations.
shareholders of family businesses and
their families in the event of marital
Our guide focuses on heterosexual
breakdown. In part one of our guide
and same-sex married couples as well
we set out the potential exposure
as civil partners, but flags the position
family businesses face in the event of a
on cohabiting couples. Any references
shareholder’s divorce which can include
throughout to divorce also apply to
the sale or transfer of shares, pensions
dissolutions of civil partnerships.
and property. In part two, we explain
some of the protective measures that
companies and shareholders should
A LEGACY INTACT
9
