Fiona Wood, Partner at McAlister Family Law, discusses how to keep your business safe during a divorce.
The financial uncertainty of divorce is particularly worrying for business owners.
A shareholding in a company is usually considered a matrimonial asset within divorce proceedings. It is often valued within those proceedings, with liquidity (how much money can be raised through the company to assist with a divorce settlement) and the sustainable income from the company also being looked at. Whilst the court will not seek to put the company in a position where it will struggle to be a viable business, the value of the shares will be factored into the divorce settlement and, depending upon the other assets available to the couple, money may have to be taken out of the company to facilitate the divorce settlement.
Read Fiona’s full Ask The Expert Feature here…
