Divorce Settlements and Family Business Owners

In "Divorce: Top Tips for Business Owners" (huddled.co.uk, 3 Feb 2013) a leading family lawyer (Chris Longbottom of Aaron & Partners LLP) offers a number of practical tips for those with businesses and going through divorce. According to Chris, it's recommended you:

• Do not take any hasty actions 
• Meet your family lawyer as possible to discuss your options, required documentation and information regarding the business, and the need for ‘full and frank’ disclosure.  
• Assess (with your family lawyers and accountant) your liquidity and funding options for business continuation and potential settlement. 
• Seek an honest valuation from valuation experts and do not try and game decisions with a low valuation, as this would be counter-productive should there be no other option but to sell the business.
• Note that the Courts usually have a preference to keep the business as an on-going concern
• Consider the legal status of your partner (e.g. director, shareholder, etc) and plan whether those roles can continue to enable the business to remain in successful operation. 
• Consider employment law issues that may arise from a disorderly exit from the business. 
• You may wish to discuss how a spouse can be safely removed from the role that they have undertaken to date. 
• Consider the advantages of having your former spouse remain as a minority shareholder.
• Seek independent advice as to whether your existing shareholders agreement covers a scenario where a fellow shareholder is about to get divorced. 
• Consider a post-nuptial agreement.