When two people separate, they must unravel more than just their personal lives – they must also unravel their financial, social and even professional lives. But how does that work with family businesses? This article is part two of a two-part series which discusses property settlements and family owned businesses. This article addresses the situation where you brought a family business owned by your parents to the relationship.
Your family business will be significant in a number of ways:
But what does this all mean?
In practice, family businesses brought to a relationship rarely get split up in a property settlement. Reaching a property settlement is about compromise – we weigh up the contributions and future needs of each party to determine a split which would be just and equitable. The fact that you contributed a family business to the relationship will work in your favour. The fact that it points to your earning capacity does not really work against you, it just doesn’t contribute to any claim you may have to an adjustment of the property in your favour.
Say the split we reach is 50-50. The way in which we reach that 50-50 split is very flexible. Since you likely own your family business and its value is dependent on it remaining intact, you can simply consider the business to be part of your 50% of the asset pool.
However, with any family law matter, it is important to talk to a solicitor to ensure your business is protected. You don’t want to take a risk on a family legacy.If you have a family law matter, concerns about your family business or questions about family law and separation in NSW and want to find out more please do not hesitate to contact us on 02 9688 6023 or email us at jfrank@franklegal.com.au
This article is provided to the reader for general information. It is not legal advice. It was written by Andrea Spencer & Emily Graham and edited by James Frank.
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Attributing a value to your business in Family Law
Property Settlement, Family law, Family Business, Small Business, separation