Separation and divorce are always painful and disruptive whatever the circumstances. But they can cause even more upset if you or your family own a business.
In this situation, business decisions taken for taxation or commercial reasons may lead to unintended (and expensive) consequences in the event of relationship breakdown.
A common example of business decisions having unintended consequences is a sole trader being advised by his accountant to set up a limited company.
It’s probably not the best commercial sense to base all your business decisions on ring-fencing your assets in case of marriage breakdown. Nevertheless, if you are involved in a family business, it is wise to have your business and tax planning decisions checked by a family lawyer. Similarly, if you are a tax adviser, it is important to point your client toward legal advice before implementing any changes. If we can provide advice on any of these issues please contact the team on 01865 781181.