SPLIT
DECISION
How businesses
are viewed by the
courts during divorce
proceedings and what
you can do to protect
your business
Advice - Punch
Robson's Katy
Moody says
your business
is not safe in
the divorce
process.
T
ying the knot, getting hitched, saying “I do” –
it’s all very romantic.
But in the real world, 42% of marriages in England
and Wales currently end in divorce.
And if you own a business and your family
circumstances change, don’t necessarily assume
your firm is safe and exempt from any financial
wrangles that might result – far from it.
It is a stark fact but, says Katy Moody, associate
solicitor in the family department at Punch Robson
Solicitors, one that the business community should
heed.
“Your business is not safe if you are going through
a divorce process,” says Katy.
“But there are ways that you can help
protect your assets, particularly before
you get married, which can provide a
path through what can be a difficult time
emotionally.
“It isn’t the most romantic of things to
consider but sound advice would be to
put a pre-nuptial agreement on your list
of things to consider.
“You can also enter into a post-nuptial agreement
after you are married.
“The outcome of divorce proceedings and how
business assets are determined varies depending on
individual circumstances – one partner can buy the
other one out, for example, or perhaps choose to
offset with property or shares, all of which involves
tax implications.
“Situations can be complex and that’s why a team
of good legal advisors is essential to best solve the
“We always say we
are here to take the
pain away, being a
safe pair of hands as
trusted advisors.”
54 | Tees Business
WORDS: JOANNE BARRETT
PICTURES: CHRIS BOOTH
way forward for all concerned.”
The starting point for the family courts is always
sharing protocol, says Katy.
“The court will look at how long the couple have
been married, when the assets were acquired,
whether the business has grown and the value of it.
“If someone has been married 20 years, for
example, and the business was started at the
beginning of the marriage and the wife stayed at
home to care for the children whilst the husband
built up the business, the court would judge that he
wouldn’t have been able to do that without his wife.
“If you have been married two or three years, as
another example, the court will likely try and put you
into the position you were in before.
“Courts do try to give people a clean break but in
a way that will keep a business secure and stable.”
The team at Punch Robson is very much a team
with expert knowledge in all areas of the law.
Complex family issues, therefore, can easily be dealt
with alongside corporate concerns with an eye on
keeping proceedings on track seamlessly.
“One of our strengths is that we can work on
both corporate and matrimonial matters under the
same roof and once a financial order is given, we aim
to make it as smooth a process as possible,” said
managing partner Elaine McLaine-Wood.
“Most business people regularly make difficult
decisions. But when they are ending a long marriage,
dealing with the business of that can be heart-
breaking and brings an emotional side in.
“We always say we are here to take the pain away,
being a safe pair of hands as trusted advisors.”