A Legacy Intact: safeguarding your family business in the event of divorce - Book - Page 101
Y O U R FA M I LY B U S I N E S S I S U N I Q U E , A S I S T H E
LEGACY TH AT YOUR GENERATION WILL PASS
T O T H E N E X T. I T I S O F C O U R S E I M P O S S I B L E
TO OFFER OFF-THE-SHELF GUIDANCE TH AT IS
E Q U A L LY A P P L I C A B L E T O A L L S C E N A R I O S , B U T
AS WE CONCLUDE THIS GUIDE, HERE IS A
SIMPLE CHECK LIST DETAILING QUESTIONS
T H AT A R E L I K E LY T O B E C O N S I D E R AT I O N S
F O R M O S T FA M I LY B U S I N E S S E S . R E F L E C T I N G
O N H O W Y O U R FA M I LY W O U L D A N S W E R T H E S E
QUESTIONS WILL HELP YOU THINK ABOUT HOW
YOU PROTECT THE LONG-TERM FUTURE OF
YOUR BUSINESS
⃣
Do you want to instil a policy that all existing shareholders/potential
future shareholders should enter into a pre-nuptial agreement in
advance of marriage?
⃣
When a shareholder marries, is there an awareness of what assets will
be protected and what will be put into the ‘matrimonial pot’?
⃣
When shareholders marry, does the family consider whether
international connections need to be thought through? Does legal
advice need to be taken in potentially relevant jurisdictions? Does a
foreign pre-nuptial agreement need to be reviewed by an English family
⃣
law specialist to check that it would be respected in this jurisdiction?
Have shareholders discussed what steps need to be taken for the next
generation of family members to ensure the protection and ongoing
⃣
success of the business?
Have you thought about privacy considerations to avoid the possibility
of unwanted and adverse publicity for a shareholder/family member
⃣
involved in a divorce, and for the wider family and business as a whole?
Looking to the future - how reliant do you want the family - particularly
the next generation - to be on the business for generating all of their
⃣
income and capital needs?
Has the family business considered a policy on whether a spouse
should be employed by the business given the difficulties associated
⃣
with their ongoing involvement if a marriage breaks down?
Do the company documents need to be reviewed to ensure that they
align with the principle of passing down shares to lineal descendants
only? Are there appropriate corporate protections in place to act as a
deterrent to the English Family Court on divorce?
⃣
What about those who are already married? Have you considered
the need for post-nuptial agreements, particularly if the business has
grown exponentially during a marriage?
⃣
What precautionary steps has your family business taken to mitigate
the risks associated with a relationship breakdown involving one of the
shareholders?
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