Dividing Business Assets

If you run a business or hold shares in a business, it is an asset, for the purposes of working out a financial settlement.  To start with have the business valued. Decide if the asset can be divided. Will the other party need to be compensated out of non-business assets? This can be very difficult if the cash flow in the business cannot sustain a large pay-out.

Dividing business assets on divorce

But don’t worry as there is range of options available when dealing with dividing business assets and interests and much depends on the business itself. Is it a sole trader where there is possibly no value? Is it a large corporation? Are there assets available? What are your needs?  It is usually possible to reach a fair agreement.

Sometimes it may be necessary to have the business professionally valued to ensure that it is fair to both parties. Very often one party will think the business is worth much more or much less that it actually is. For this purpose let’s get it right from the start!

When a divorce takes place, consideration is vital to the assets of the marriage and how they’re divided.  Businesses in the past were protected but this has changed since the precedent case of White v White.


Some businesses, like partnerships, are merely income streams. If there is no underlying capital value – if there is nothing to sell – then it is merely the income stream that matters. That does not need valuing.

If one spouse owns a business outright or has a significant shareholding in a business, then it is usual to ask for the value of the business. . This is a difficult thing to do and it is normal to instruct an expert accountant who specialises in this field. A discussion should then take place with your Divorce Negotiator.

Divorce Negotiator will help you work through the options and achieve a fair outcome and equally important, ensuring both parties can meet their needs and support themselves.



Dividing Business Assets was last modified: June 12th, 2017 by Carol Sullivan

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