A Business Owner's Guide to Divorce: What You Need to Know Before You Start

Divorce is never straightforward. For business owners, it carries a set of risks that most people who have not been through it do not anticipate.

Your company, your shareholding, your business assets. In divorce proceedings, these are treated as part of the matrimonial pot unless there are good reasons to argue otherwise. How they are dealt with can determine whether your business survives the process intact.

The valuation question

Agreeing on what a business is worth is often the most contested part of a divorce involving a company. Valuations can vary widely depending on the method used. Having the right independent forensic accountant and a clear valuation methodology from the outset is not optional. It is essential.

What does the court actually consider?

Courts look at the overall picture. Whether the business predates the marriage, whether the other spouse contributed to it directly or indirectly, how liquid it is, and whether a clean break is achievable. None of these questions have simple answers, but all of them affect the outcome. Our page on financial claims explains how the courts approach dividing assets in more detail.

The goal: protecting what you have built

In most cases, the aim is to find a financial settlement that allows the business to keep operating. That might mean one party receives other assets in lieu of a share of the business, a structured buy-out over time, or an offset against property or pension assets.

Plan ahead if you can

If you own a business and you are not yet in this position, it is worth knowing that a well-drafted shareholder agreement can include provisions to protect other shareholders if one goes through a divorce. A pre-nuptial agreement is also worth considering for business owners entering a marriage.

We act for business owners across Gloucestershire and the wider Cotswolds. Read more on our companies and divorce page or call our family team on 01285 649782.

Need advice on a family law matter?

The family law team at Sewell Mullings Logie has the experience to help you through it.

Sarah Pugh is a Partner and specialist family lawyer who qualified in 2016 and became a Partner in 2023. She advises on divorce, separation, financial settlements, child arrangements, cohabitation matters, and pre and post-nuptial agreements. Sarah is a member of Resolution and offers a free 30-minute consultation for initial advice.

Tracey Amos is a Senior Associate and Chartered Legal Executive Litigator (Family Litigation) who has practised family law since 1997. She is a Resolution Accredited Specialist in Private Children Law and Domestic Abuse, and is listed as a Leading Lawyer by Wiselaw. Tracey advises on divorce, separation, children arrangements, financial settlements, and cohabitation disputes.

Both Sarah and Tracey aim to reach the best possible outcome for you with the minimum stress. To get in touch, call 01285 650 000 or visit the contact page.