Business and Divorce

Discussion in 'Legal' started by Joe E, Jun 19, 2016.

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  1. Joe E

    Joe E UKBF Enthusiast

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    Hi

    Hopefully posted this in the right forum apologies if not so.
    Anyway a friend of mine is just about to start divorce proceedings her husband is a business owner so I was just wondering whether she has any claim on the business revenues/profit as part of her entitlement with the divorce settlement.
    As said she is getting formal legal representation but I thought I'd ask pre all that.
    I understand each case potentially has its own circumstances but is there a precedent or general guidelines anyone can advise me on.
    The business I believe is Sole trader not Ltd, she has never been a equal partner or nbeen named on any official documents in the business but has been on the payroll in the past as an employee if that has any bearing at all.

    Grateful for any information whatever it is.
     
    Posted: Jun 19, 2016 By: Joe E Member since: Oct 24, 2007
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  2. Bob

    Bob UKBF Legend

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    Might be worth researching the facts behind this case
     
    Posted: Jun 19, 2016 By: Bob Member since: Jul 24, 2009
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  3. Joe E

    Joe E UKBF Enthusiast

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    Thanks Bob for the link, interesting really in that case what she was awarded was based on an 'equal contribution' but its doesn't go into detail or define what that contribution was but I suppose its only newspaper type story and not a case study.

    Appreciate it many thanks
     
    Posted: Jun 20, 2016 By: Joe E Member since: Oct 24, 2007
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  4. Mark T Jones

    Mark T Jones UKBF Legend

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    The courts will take into account all income and assets. In theory they will adjust the split for contribution (based around what each party introduced and what they actually contributed) - bringing up the kids, quite reasonably is seen as an equal contribution to running the business

    The contribution bit is fairly tricky and, does seem to be skewed in favour of the wife.

    Your friend would be well advised to broker a deal before they start throwing truck loads of money at lawyers.
     
    Posted: Jun 20, 2016 By: Mark T Jones Member since: Nov 4, 2015
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  5. Joe E

    Joe E UKBF Enthusiast

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    Thanks Mark, yes the example you gave re Children upbringing is very relevant in this case, agreed it does seem a bit skewed.

    As for brokering a deal I know that is the ideal situ to get to but his attitude to the whole thing is 'I'm out to get as much as I can' not withstanding the whole thing is happening because of a 'misdemeanour' on his part.

    Plus he's already has suggested several times to leave lawyers/legals out of it and settle it themselves.. Why?? (apart from the lawyers fees of course)

    Thanks for your contribution Mark, much appreciated
     
    Posted: Jun 20, 2016 By: Joe E Member since: Oct 24, 2007
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  6. Mark T Jones

    Mark T Jones UKBF Legend

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    The answer here is money & rationality. You do need lawyers at some point, but the more aligned the 2 parties are, the less it will cost, and the more effective the lawyers services will be

    Whatever they say, lawyers earn money by building division. I have a good friend going through this process. He is being stubborn, seeing it as a battle to be won - despite all of his friends pointing out that the solicitors are currently winning. Fees are already well into 6 figures and there is a way to go!
     
    Posted: Jun 20, 2016 By: Mark T Jones Member since: Nov 4, 2015
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  7. ethical PR

    ethical PR UKBF Legend

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    Have they looked at mediation yet? I think nowadays when you have children this is a requirement.

    This will help them come to an agreement before approaching lawyers to draw up the papework/finalise the agreement.
     
    Posted: Jun 20, 2016 By: ethical PR Member since: Apr 19, 2009
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  8. Bob

    Bob UKBF Legend

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    She was a non working wife who brought up the children. Only remember this because it was local news for us and got a lot of local press coverage
     
    Posted: Jun 20, 2016 By: Bob Member since: Jul 24, 2009
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  9. Joe E

    Joe E UKBF Enthusiast

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    Thanks again Mark, I'm sure you are right re Lawyers especially as you say alignment is important unfortunately in this case is practically non existent, at least at the moment.

    As an aside, re your last sentence two words Wow and Ouch!
     
    Posted: Jun 20, 2016 By: Joe E Member since: Oct 24, 2007
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  10. Joe E

    Joe E UKBF Enthusiast

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    Thanks for responding, They haven't looked at mediation as yet its quite early on and unfortunately they are poles apart and I suspect not emotionally ready for it.
    I should say the children are no longer children as such one is 20 and the other 18 so with regards to mediation is that an actual requirement at those ages?
     
    Posted: Jun 20, 2016 By: Joe E Member since: Oct 24, 2007
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  11. Joe E

    Joe E UKBF Enthusiast

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    Thanks Again Bob
     
    Posted: Jun 20, 2016 By: Joe E Member since: Oct 24, 2007
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