Valuing a private company or family business in a divorce settlement

Running your own business can be the fulfilment of a lifelong dream, but it also brings stresses and strains which sometimes contribute to relationship breakdown. It certainly adds complexity when trying to agree a financial settlement after divorce. ‘The key challenge is to achieve a fair settlement without jeopardising the long-term financial health of the business upon which both people may still need to rely,’ says Robert Bellhouse, a Family Solicitor in the family team with Ware & Kay. ‘Determining a valuation for any business takes skill and tends to be a more complex exercise than valuing other matrimonial assets such as the house or a pension.’ Obtaining a business valuation Like all other matrimonial assets, it will be necessary to obtain a valuation of the family business or private company.  In order to achieve…

Changes ahead in capital gains tax rules for divorcing couples

At present, no capital gains tax (CGT) is charged on a transfer of assets between a married couple or civil partners who live together. If, however you are separated or divorced from your spouse or civil partner, then this tax relief does not necessarily apply. The Office of Tax Simplification reviewed the rules relating to separating couples in July 2022 and proposed a number of recommendations which the Government have agreed to implement from April 2023. Robert Bellhouse, Family Solicitor with Ware & Kay in York, Wetherby & Malton explains, ‘The new rules mean that separating couples will be afforded more time to transfer assets between themselves without the risk of being charged CGT. This is a welcome change and will take one financial pressure off, allowing more money to be available to meet the…

Our guide on changing your name

  As recognised by Article 8 of the Human Rights Act 1998, everyone has the right to a private and family life, which includes having the right to change their name, without justification, providing that it is not for any frivolous such as a bet or fraudulent reason such as to avoid paying a debt.   There are several reasons why you might want to change your name including (but not limited to): To double-barrel your name after entering into a marriage or civil partnership; To bring a family together, for example, a step-family To reflect your gender; You dislike your current name; or Your name was registered incorrectly.   What changes can I make to my name? The changes that you can make to your name include changing your forename, middle name(s) or surname…

Step-by-step guide to no-fault divorce

Since April 2022, couples have been able to seek a divorce after one year of marriage without having to blame their former partner for any reason. Prior to the change in the law, couples who agreed to separate had to wait at least two years before they could divorce.  If they wanted a divorce prior to this, then blame had to be attributed to their spouse.  There were no alternative options. Robert Bellhouse, a Family Solicitor with Ware & Kay in York & Wetherby explains, ‘Thankfully the introduction of no-fault divorce means you can now petition straight away without blame being attributed to either spouse.  It is hoped this will lead to less acrimony, which could ease financial negotiations and foster better relations between divorcing parents which can only be seen as a positive for…

Is a prenup part of your business risk management strategy?

Managing risk is an essential part of any business operation and while personal relationships do not often appear high on a business risk register, an acrimonious divorce has the power to devastate a small business. ‘While few anticipate or want to believe their own marriage will break down, sadly recent statistics show that over a third of all marriages end in divorce,’ says Robert Bellhouse family law expert at Ware & Kay in York & Wetherby. ‘It is not uncommon for directors of a family business to insist that members of the next generation enter into a prenup before they get married, in order to protect the business assets from the effects of a divorce.’  It is sensible for all entrepreneurs to consider a prenuptial agreement if they are thinking of getting married or entering…

Carving up a family farm after divorce or separation

While January is a time of new resolutions and fresh starts, Christmas may have been a difficult time with strained relationships in hard-pressed farming families, many of which are still struggling with the aftermath of Brexit, Covid and the current cost-of-living crisis. It is little wonder then that the first Monday of January is known amongst family lawyers as ‘Divorce Day’, with so couples having reached breaking point and looking to split up or file for divorce. Divorce or separation is always a stressful time, as couples seek to split their joint belongings and make arrangement for their children, but can be especially difficult for farming families whose assets may not be easy to divide, as Robert Bellhouse, family law specialist at Ware & Kay Solicitors in York & Wetherby explains. When couples divorce, the…

Think twice before using social media during a family dispute

It is forecast that, by the end of this year, 90 per cent of the UK adult population will use a social media account at least once a month.  This is a remarkable statistic, but perhaps even more remarkable is that the average user is estimated to spend more than two hours per day on social media.  There is no doubt that we are putting more of our lives online than ever before.  We are more comfortable with posting about our family celebrations, our personal dilemmas and our relationship status.  ‘Unfortunately, social media can bring its own set of problems when it comes to a family breakdown,’ says Robert Bellhouse family law expert at Ware & Kay in York & Wetherby ‘Once you may have told only your closest friends about your relationship problems, but…

Reconciliation; can we change our minds about getting a divorce?

You are likely to have spent some weeks, months or perhaps even years contemplating getting a divorce before you decided to apply, and even then, you may still wonder if it is not too late to save your marriage, particularly if you have children together. ‘Issuing or receiving a divorce petition can be the spark that awakens feelings or renewed efforts and could lead to a reconciliation,’ says Robert Bellhouse, a Family Solicitor with Ware & Kay. ‘It is not uncommon following a divorce petition for a couple to talk more openly to each other, perhaps supported via counselling or mediation.  This can be the start of working together to address the cause of unhappiness and could lead to a route forward together again.’ While the decision to divorce is a big step, there is…

Shepherding a farm business through a second marriage

When someone finds love again and wants to remarry it is of course a cause for celebration. However, things can get complicated when a farming business is involved – particularly if you want to leave the farm to your children or other family members. So it is important to take time to think about the consequences before rushing into things. Robert Bellhouse, agricultural law specialist at Ware & Kay Solicitors in York & Wetherby outlines measures farmers should take a moment to consider to ensure the continuing success of the family farm if they marry again. Make a new Will Remarriage revokes any previous Will making it invalid, so it is imperative to make a new Will if you are looking to tie the knot again – especially if you are looking to pass the farm…

Protecting your assets against the impact of relationship breakdown

Cohabitation Agreements The data from the ONS shows that in 2019 the number of marriages decreased by 6.4% on the previous year.  The figures also show that in 2019, 18.4% of families were cohabiting couples.  That figure rose to 22.9% in 2021.  It seems that more and more couples are choosing to live together as a form of commitment rather than getting married.     There is a common misconception that couples who live together automatically become ‘common law’ spouses, especially if they have children or property together.  Many believe that they have the same rights as a married couple.  Unfortunately this is not the case, irrespective of the length of their relationship.  So what happens to the parties’ assets on separation?  At present, where there is property owned by one or both of the parties, cohabiting…