The Business Exchange Bath & Somerset Issue 2: Winter 2016/17 | Page 27

BUSINESS AS USUAL? Divorce is a stressful time and a marital breakdown can have a disastrous effect on a business particularly when it is co-owned and managed. So how can you protect your business in a divorce? Rebecca Silcock, partner and head of family at Mogers Drewett discusses the benefits of pre-nupital agreements and the collaborative divorce model to ensure a family owned business is secured post-split. Entrepreneurs are typically driven, ambitious people and understand risks appear in guises of bad luck, competition, or the economy. They plan to manage those risks but few plan to minimise the effect of the distraction, emotion and financial costs of a martial breakdown. For many entrepreneurs they will face the reality of an equal split being deemed fair. For some this does seem fair, their spouse has borne financial risk and supported them along the way, while for others this entails sale of the business or raising finance to buy out their spouse. However, it is not often that easy to disengage or entangle two people from a business, for that reason many now consider a prenuptial agreement to protect their business as a sensible move. It is an insurance policy that, in the event of a divorce, can save the acrimony and costs of a contested divorce which can only be a good thing. If you have not got a pre-nuptial agreement and are married it is really a bit late. However, you could try asking your spouse for a post-nuptial. But in reality unless it is a business you have recently acquired or are about to invest in then your spouse already has entitlement to a share of your assets. Negotiations in any asset splitting matters can be difficult but there is no need to be confrontational. In my experience the best financial arrangements are resolved around a table using a collaborative model. A collaborative divorce is a process by which both parties use mediation and negotiation to settle the divorce as opposed to a scenario of “fighting it out” in the court. This is often where the best creative solutions are found rather than using the court and when it comes to divorcing people from businesses is by far the best method to ensure decisions are taken that won’t jeopardize the value or ongoing prospects of the business entity. If you require help with a family business issue such as divorce then please contact Rebecca Silcock on 01225 750000 or email [email protected]. Rebecca, Silcock, partner and head of family at Mogers Drewett For more info: www.md-solicitors.co.uk @mogersdrewett Get your business moving We’re a one-stop shop for relocating businesses in and around Bath & Somerset. If you’re considering moving office, we’re on hand to do the heavy lifting. Commercial relocation Specialist moves Move management Space planning Crate hire 01249 848499 [email protected] LIVE! NEW WEBSITE, NOW k .u o .c s e v o m d e allbox THE BUSINESS EXCHANGE 2016 27