Dividing Business Assets in Divorce

+ Jointly Owned Family Businesses

In many cases, spouses have co-built a business and serve as joint directors, shareholders, or partners. A divorce often requires difficult decisions—should the business be sold, should one party buy out the other, or can a continued professional relationship work? Each route has significant legal, financial and emotional implications, and we’ll help you weigh your options clearly and confidently.

+ One Spouse as Business Owner

Where one spouse is the sole or majority owner, director, or shareholder, and the other has no direct involvement, questions often arise about how the business is valued within the marital assets. Even if the company is in one name, its worth can—and likely will—form part of the financial settlement. We work to ensure a fair outcome while protecting the viability of the business.

+ Involvement in Wider Family Businesses

Sometimes, the business is owned with parents, siblings, or other relatives. This can create additional layers of complexity, particularly where shares or ownership stakes need to be valued without disrupting the broader family dynamics. Our experience in family business disputes allows us to navigate this sensitively, always balancing fairness with practicality.

+ Partnerships and LLPs

Spouses who are part of a professional partnership or Limited Liability Partnership (LLP) may be subject to restrictions within their partnership agreement. These can limit the ability to transfer or liquidate their interest without consent from other partners. We provide targeted advice that respects both your legal entitlements and the operational needs of your business partners.

+ Sole Traders and Entrepreneurs

Where a spouse is self-employed or operates as a sole trader, their business assets are often indistinguishable from their personal assets. In these cases, we work carefully to assess the value of the business, its earning capacity, and its role in your family’s finances to ensure a just division that considers both parties’ futures. No matter your role or the size of your business—from family-run shops to rapidly scaling enterprises—our family law solicitors will take the time to truly understand how your business works and what it means to your financial stability. We offer tailored, strategic advice that reflects your real-world circumstances, whether you’re steering a thriving company, navigating challenges, or preparing for growth post-divorce.

+ Will I have to sell my business if I get divorced?

In most cases, no. Courts prefer to find ways of preserving businesses, such as through offsetting or structured buy-outs, rather than forcing a sale.

+ Can my spouse claim part of my business if they were never involved in it?

Yes, even if only one party ran the business, its value may still form part of the matrimonial assets to be divided.

+ How is a business valued in a divorce?

Typically through an independent valuation by a forensic accountant, considering assets, income, liabilities and future earning capacity.

+ Can business partners be affected by my divorce?

Potentially yes, especially if ownership structures are complex. Early legal advice is vital to protect both your interests and those of any partners or co-owners.

+ What if my spouse is refusing to disclose financial information about the business?

Courts can compel disclosure and may impose penalties for dishonesty. Our team has extensive experience in addressing non-disclosure issues swiftly and decisively.

+ What is the procedure if one spouse wants to keep the business and buy out the other’s share?

If one spouse wishes to keep the business, they will need to agree to a fair price to buy out the other’s share. If an agreement cannot be reached, the court may order an independent valuation. Financing may be required to complete the buy-out, and the transfer must be properly documented. Prenuptial or postnuptial agreements may also influence the outcome.

+ What are the tax implications of dividing business assets during a divorce?

Dividing business assets can trigger tax liabilities, including Capital Gains Tax on asset transfers and Stamp Duty Land Tax on property transactions. Early advice is essential to identify and manage any tax risks as part of your settlement.

+ Is a limited company protected in a divorce?

While a company has a separate legal identity, the court can treat a spouse’s shareholding as a matrimonial asset. The company itself is not directly affected unless formally joined into proceedings. Protective structures such as shareholder agreements may help minimise risk.

+ Do I need to disclose my director’s loan account (DLA) in a divorce?

Yes. A director’s loan account is treated as a financial asset or liability and must be disclosed. Whether the company owes you money, or you owe the company, the balance will be considered as part of the financial settlement.

+ Why are company assets so important in divorce?

For many families, a business (whether it’s a limited company, a small family firm, or a professional practice) can be one of the most valuable assets – both financially and as a source of ongoing income. Ensuring this asset is handled properly is critical for your financial future. Missteps could risk the business itself or lead to an unfair settlement. That’s why it’s vital to approach these cases with careful legal and financial guidance.