Navigating divorce as a business owner
Things rarely get more personal than in a dispute between married couples, but if either of those involved are business owners, it can also affect their colleagues and clients as well as friends and family members.
Without the right advice and support, divorce can seem like a minefield, but if you’re also running a business, it can be overwhelming.
Previously, it was necessary to apportion blame and demonstrate to the court that one party had committed adultery or unreasonable behaviour, or if there had been a requisite period of separation or desertion.
This could lead to highly contentious proceedings that could be financially and emotionally bruising, especially for any children involved.
Thankfully, this came to an end in 2022, so courts no longer require any evidence of the breakdown of the marriage other than the applicants or joint applicants providing a statement of irretrievable breakdown.
There is also now no ability to contest the application for divorce or dissolution of a civil partnership except for very limited reasons and there is no defence if the other party simply does not accept or agree that there should be a divorce.
The new procedure is made up of two parts:
A minimum 20 week “cooling off” period between the start of the proceedings and confirmation by the court that a conditional divorce or dissolution order should be made
A further six weeks before that conditional order can be made final, and the divorce or dissolution concluded with a final order
This is intended to provide an opportunity for “reflection” and to allow a couple to deal with any financial aspects of their separation. During that period, either party can withdraw their application, but it can still be finalised if one party continues with the divorce.
The divorce/dissolution itself is of course only one aspect which usually needs to be addressed. Often there will also be issues regarding the care of any children and financial arrangements.
Finances can be especially important if you run a business and your spouse or civil partner has an interest in it, particularly if they are appointed as a director or shareholder. If financial arrangements aren’t resolved before the divorce is made final, your circumstances can be severely impacted, particularly if there are pensions involved.
It is therefore strongly advised that the financial implications arising as part of a divorce are considered at an early stage.
Even though divorce is less contentious than in the past, there can still be difficult and nuanced consequences that need to be considered. Here at Wilkin Chapman, our specialist family lawyers will be able to guide you through the procedure and ensure that you avoid any pitfalls, adverse results or unfairness that can occur without specialist legal advice.
Contact Stacey to discuss this further.
