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Jul 13, 2016
Last month, the world was rocked by the United Kingdom’s decision to leave the European Union. The legal ramifications of this decision are extensive and we will certainly be watching them unfold with interest. In family law, this decision will have numerous consequences for families living spread across Europe. But what does this have to do with Australia?
One of the major consequences of Brexit was its impact on the global economy. If you or your partner own a business or shares in a non-European country, the impacts will be less severe. However, if you or your partner own a business or shares in a European country, the ongoing ramifications of the United Kingdom leaving the EU (and the UK itself possibly dissolving) may result in the value of your assets fluctuating considerably.
So, why does this matter for family law? An Australian family law property settlement requires that all assets be valued, including businesses, shares, term deposits, investments and superannuation funds that are located overseas. If your assets fall under UK law, their value may fluctuate considerably in the coming years as the UK legal system is gradually untangled from EU law. For example, from a corporate perspective, EU law impacts the UK’s tax policies. The business structures of UK companies may fall under different tax systems in the wake of Brexit and should therefore be reviewed. Otherwise, the business may be liable for greater tax outlays and its value may decrease as a result.
Unfortunately, we cannot predict how Brexit will play out in the coming months and years. However any market volatility and fluctuations may impact the value of your business and shares. This is important to consider when commencing a family law property settlement.
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 9688 6023 or email us at info@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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