business, they do have the power to order a sale in extremely rare circumstances, which should be borne in mind. Alternatively, one of the couple may need to buy out the other’s share in the business, or liquidate assets to achieve the same result, all of which can become complex and time-consuming. It also risks negatively impacting the performance of the business with couple’s attention elsewhere. Also, few businesses have the spare capital or


assets to liquidate to achieve a clean break and the resultant pressure to sell will typically signal the end of the business, unless an amicable split is possible, as hoped for Bill and Melinda. Divorce doesn’t necessarily mean going to court,


and family mediation, especially in connection with family-owned businesses, makes a lot of sense. A negotiated settlement will typically be quicker, cheaper and far less emotionally draining than relying on the court to resolve matters. Collaborative Law is an excellent option for


spouses who are joint business owners, as the negotiations are handled face-to-face rather than through lawyers’ letters, with a focus on guiding the arrangements forward amicably. T is gives the best chance of preserving a working relationship as business partners, even if the marriage is over. And remember, divorcing partners will often


have to work together and make jointly benefi cial decisions until the business can be sold and that presents a lot of challenges, if the best sale price is to be realised.


Protecting a business from divorce T e fi rst step to protecting a business is not particularly romantic and requires foresight to draft appropriate documentation, which typically takes the form of a pre-nuptial agreement. Admittedly, not the easiest topic to raise when a relationship becomes serious. It is perhaps surprising to learn that Bill Gates did not decide to enter


in to a pre-nuptial agreement with Melinda, despite being the youngest American billionaire when they met. A pre-nuptial agreement is not just about the relationship between


the owners, but the future of the business, its reputation, the livelihoods of its employees, any investors, its clients and even its customers. A Founder’s Agreement is a good place to start and sets out formally how the founders of a business will operate it, hoping to avoid any disputes or misunderstandings which could threaten it in the future. In the UK this formal document will typically be in the form of a Shareholders Agreement.


Act now before it happens Discovering a business does not have the correct agreements, when the divorce lawyers are valuing it for sale, will only add to the pain of divorce. Preparing in advance does not make relationship breakdown inevitable, but will ensure a more amicable divorce, if it ever happens. You might own all, part or none of a family business, but knowing


which direction your next step should take you in the future, requires fi rst knowing where you are now. Divorce is naturally an emotive subject, but experienced family


lawyers will work hard to understand their client’s perspective, advise them quickly and cost-eff ectively, to help them avoid ending their marriage in court, if at all possible.


For more information, particularly on the Collaborative Law option, contact Ben Twitchen on 01582 714609 or email ben.twitchen@taylorwalton.co.uk


ALL THINGS BUSINESS


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