Breaking-up: The Business

The question “What’s the business worth?” is often heard in a divorce. The next question is whether the capital value of one party’s interest in the business should be added to the matrimonial assets for division.

In many cases a business will be the main income generator for a family after a divorce. One party may feel they are being unfairly treated if their share of the capital pot is made up largely of the value of the business. Clearly they cannot realise its capital value as the business is needed to produce an income to pay maintenance. In contrast, the other party gets ‘liquid’ capital in the form of the house or savings.

A recent Court of Appeal case clarified this issue stating that where there are ongoing maintenance payments, business assets should not generally be given any capital value and instead should be treated as a secure income source to avoid the risk of double-counting.
To find out how this may apply to your particular circumstances,

To find out how this may apply to your particular circumstances, please contact:
Nicola Fletcher
Tel +44 (0)20 7440 7140
nicola.fletcher@mishcon.com