We spend much of our time helping clients reach agreement about a fair division of the matrimonial property (assets acquired by the parties during the marriage) following separation from their spouse. Married clients with business interests are often concerned about whether their husband or wife has any claim on those interests. What is the position?
Shareholdings
If, at the date of the marriage, one party to the marriage is a shareholder in a limited company, the shareholding will not constitute matrimonial property if the couple separate, unless the shareholding has undergone a significant restructuring during the marriage. In that event, the shareholding will constitute matrimonial property which must be valued when considering how the matrimonial property should be divided.
Partnerships
Any increase in the separating partners capital account during the marriage will be treated as matrimonial property. However, if the principal partnership assets were acquired before the marriage then they may be excluded, depending on the circumstances.
The valuation of business interests for the purpose of a separation is complex and specialist advice from someone with knowledge of the current legislation is recommended.
If you have business interests and are going through a separation, contact the Family Law team at Lindsays who are experienced in helping clients in this respect.
We can also offer advice to those who are happily married, which will prevent the issue in relation to their business interests ever arising should their marriage breakdown in future, or work with them to minimise the risks.
