A Legacy Intact: safeguarding your family business in the event of divorce - Book - Page 35
A spouse can no longer rely upon their financial hearing on
divorce being dealt with in private.
N
E
SP
O
The reputational risks associated with an acrimonious
divorce can therefore be significant – not just for the individual
shareholder spouse embroiled in it but also for the wider
family and for the business as a whole.
T
L
U
W
LCOME
HT
AN
IG
SK
:
L
E
&
A
OR
RI
DIV
C
REP
U TAT
IO
N
A LEGACY INTACT - EXPOSURE
The English Family Courts leave no stone unturned when
delving into spouses’ finances. Extensive disclosure is
required
from
the
outset
which
can
result
in
s c r u t i n y a s t o a n i n d i v i d u a l ’s t a x a f f a i r s ; a l l e g a t i o n s o f
non-disclosure and hidden assets; the role that each spouse
has played in the business and how they have been treated; and
whether business money has been misappropriated for personal benefit.
The potential for damage to a family business’ brand
in the long term is a serious consideration and the
opposing spouse may well use this as leverage to
exert pressure on the shareholder spouse to put a
generous offer on the table to make it all go away.
35
