Hard working owner managers and entrepreneurs spend years building up their business to the point where they have a sizeable annual turnover and full order book. Looking ahead they pay into a pension fund regularly, so they can enjoy a comfortable retirement.
But if things start to go wrong at home all of this could be in jeopardy, and not just because of the emotional strain experienced.
The first time some business owners realise the full implications is when their spouse’s solicitors arrange for a business valuer to call in order to put a price on the business as a ‘going concern’. Owner managers often come to us and say ‘they can’t do that can they’? ‘They’ve never even set foot in the place, never wanted anything to do with the business.’ Unfortunately they are wrong.
Any business will be regarded by the divorce court as a matrimonial asset, to be thrown into the scales along with the house, savings and investments and their pension fund. What many people don’t realise is that amongst other things they could lose up to 50% of their pension fund, which could completely disrupt plans for retirement. Clearly the implications are huge for anyone with a sizable pension fund.
Woolley & Co recommends business owners take expert advice and help from lawyers who understand business as well as understanding divorce law. Contact our divorce team if you need advice or visit www.divorce-lawfirm.co.uk.
