PROMOTION Divorce: a risky business? If you are getting divorced and your spouse is a business owner, it is crucial that this is factored in when agreeing a financial settlement. However, this is a complex area as many businesses do not have a stable value and are risk laden. Liz Allen from Stephens Scown LLP is one of the UK's leading divoroe lawyers. She outines answers to questions she is often asked. Can a business be included in a divorce settlement? business assets can be a reason for departing from an even split with the spouse who continues to own the business after divorce arguing that they should retain more than S0% of the total pot to acknowledge the risk they take on Many assets have a fairly secure with its value. Where a farm was concerned the judge made no The simple answer is yes. But a distinction between the nature key issue here is to ensure that businesses are correctly valued. of the basiness and the couple's other assets Business assets can often have a However, shares in a private company are much more volatile and a recent decision shows capital value which is taken into account in any asset division. On other occasions the value of a business is purely the income it and stable value. These are often the court must factor that in known as "copper bottomed particularly by giving the business owner time to raise funds to buy out their spouse's share. So whilst business valuations are helpful, they are only ever a snapshot and it is the nature of a business that will impact on the court's approach This is a very complex area of law and it is important to take assets and could include generates The appropriate treatment of the business will depend on the nature of the basiness, the lengih property, ISAs and other savings In contrast, the value of many businesses fluctuate and are risk laden. Issues as to whether one of the marriage, the other assets in the case and the needs of the couple involved. party owned the business prior to the marriage can also be relevant. Will a business always be split 50/507 Does the type of business make a difference? advice early and instruct a family lawyer with expertise in this area and they can advise on the possible imvolvement of a forensic accountant to value the business, The starting point for dividing assets on divorce is generally a 50/50 division between the spouses. However, the inherently risk-laden nature of some Yes, the type of business does matter. Case law from last year highlights the need to consider the nature of the business in assessing the extent of the risk associated Liz Allen is a partner and head of the family team at Stephens Scown She specialises in high value and complex financial divorces. She has tier 1 ranking in Chambers UK and Legal 500, as well as being recognised by the CtyWealth Leaders List, an intemational guide to the most highly regarded figures in private wealth management Contact Liz: 01392 210700 solicitors@stephens-scown.co.uk www.stephens-scown.co.uk PROMOTION Divorce: a risky business? If you are getting divorced and your spouse is a business owner, it is crucial that this is factored in when agreeing a financial settlement. However, this is a complex area as many businesses do not have a stable value and are risk laden. Liz Allen from Stephens Scown LLP is one of the UK's leading divoroe lawyers. She outines answers to questions she is often asked. Can a business be included in a divorce settlement? business assets can be a reason for departing from an even split with the spouse who continues to own the business after divorce arguing that they should retain more than S0% of the total pot to acknowledge the risk they take on Many assets have a fairly secure with its value. Where a farm was concerned the judge made no The simple answer is yes. But a distinction between the nature key issue here is to ensure that businesses are correctly valued. of the basiness and the couple's other assets Business assets can often have a However, shares in a private company are much more volatile and a recent decision shows capital value which is taken into account in any asset division. On other occasions the value of a business is purely the income it and stable value. These are often the court must factor that in known as "copper bottomed particularly by giving the business owner time to raise funds to buy out their spouse's share. So whilst business valuations are helpful, they are only ever a snapshot and it is the nature of a business that will impact on the court's approach This is a very complex area of law and it is important to take assets and could include generates The appropriate treatment of the business will depend on the nature of the basiness, the lengih property, ISAs and other savings In contrast, the value of many businesses fluctuate and are risk laden. Issues as to whether one of the marriage, the other assets in the case and the needs of the couple involved. party owned the business prior to the marriage can also be relevant. Will a business always be split 50/507 Does the type of business make a difference? advice early and instruct a family lawyer with expertise in this area and they can advise on the possible imvolvement of a forensic accountant to value the business, The starting point for dividing assets on divorce is generally a 50/50 division between the spouses. However, the inherently risk-laden nature of some Yes, the type of business does matter. Case law from last year highlights the need to consider the nature of the business in assessing the extent of the risk associated Liz Allen is a partner and head of the family team at Stephens Scown She specialises in high value and complex financial divorces. She has tier 1 ranking in Chambers UK and Legal 500, as well as being recognised by the CtyWealth Leaders List, an intemational guide to the most highly regarded figures in private wealth management Contact Liz: 01392 210700 solicitors@stephens-scown.co.uk www.stephens-scown.co.uk