Divorce - Assets/Business

A friend of mine has separated from his wife and a divorce is most likely on the cards. His wife never worked during their marriage and he has his own business. If they divorce are all assets split 50:50? Will she be entitled to 50% of the business despite the fact that she never worked in it? He is quite happy for her to take 50% of everything else and the entire family home but is anxious about the business.

Every case is different. The rule is that the Court must make proper provision for all parties and to do that it will take account of ALL assets, whatsoever and wheresoever situate, whether held in sole or joint names or with any body else.

Much depends on the age of the parties, whether there are children , the earning capacity of the parties, the matter of pensions and, indeed, what the parties themselves ( after taking proper legal advice) want to do. Many people are entirely grubby about money and want it all - it does not work like that. The parties need to look at the other person's situation and decide, with their advisors, what amounts to proper provision. Very often, what does happen, is that the parties negotiate a settlement based on what a Court would likely order, if it ever went to that stage. But if people get thick ( and, boy oh boy, can people be thick when it comes to marital break up and money!) it can all get very nasty. And expensive.

It is particularly difficult at the moment and a lot of separating/ divorcing couples are being advised to consider "interim" settlements until , it is hoped, the economy improves. It is far from ideal but it is realistic.

mf

He is quite happy for her to take 50% of everything else and the entire family home but is anxious about the business.

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Hi there despite the fact that his ex did not work in the business she would have assisted him in other ways - if they had a family - she looked after the children while he was working, and he did not have to worry about them. By her taking a back seat in her career this could have helped him build up his own business.. This has been reflected in the UK where wives have been awarded huge sums in the divorce..

I say good luck to his wife

pinkyBear said:

I say good luck to his wife

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I think it's a bit unfair say that without having anymore information.

I know of a recent case where a man and woman are married for 4 yrs. Both retired. Him from work and her from doing nothing. She came to marriage with nothing (not a pot to p. in). He came with s500K. She is now looking for 50% of everything. Complete greed and not a case where you would say good luck to the wife.

pinkyBear said:

if they had a family - she looked after the children while he was working, and he did not have to worry about them. By her taking a back seat in her career this could have helped him build up his own business.

I say good luck to his wife

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She didn't have a "career" before marriage and she brought nothing other than her Fiat punto to the relationship! 50% of everything and the family home is considerably more than any childminder would have charged.

Thanks MF1 for your comments. Both are in their late 30s so earning capacity is good. Regarding "proper provision" - would the courts be looking to maintain the previous lifestyle even though this will no longer be possible if trying to run 2 households?

He is quite happy for her to take 50% of everything else and the entire family home but is anxious about the business.

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I'd take it from that, that the business it worth well in excess of the house & everything else?

is considerably more than any childminder would have charged.

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She was not the childminder - she was his wife & the mother of his children.

I'm not saying what the outcome should or shouldn't be and I'm definately not anti-men, but I have seen a few people go through divorce in the last while and the women definately don't seem to come out the better off (especially when the guy is self employed & can "move assets").

Plus the women normally have custody (again this is a separate issue for another forum as I know there are loads of dads to would love to have custody....but it's fair to say it is normally the woman). Having full custody means she will find it very diffucult to find and persue a career and/or meet another partner.