There are some common complications to divorce or dissolving a civil partnership, usually involving disputes about finances, assets, residential arrangements for the kids, or disagreement over who is to blame.
But a question that is being asked increasingly often is how to divorce when you’re in business with your partner.
In recent decades, the UK has become a nation of freelancers and entrepreneurs, with a growing number of self-employed individuals, start-ups and SMEs.
For married couples, running a business together can be a passion project in happy times, as well as a way to benefit from tax breaks by naming your life partner as a business partner and equal shareholder.
But when the romantic relationship comes to an end, what happens to the business partnership? Experienced family and business mediators can help you to decide.
One of the big issues is whether your spouse is a silent partner or actively involved with the day-to-day running of the business.
It’s common practice to name a spouse as company secretary and give them 50% of the shares in the business, to split any tax-free entitlements and reduce individual liabilities, even though they are not responsible for conducting business.
On the other hand, many couples meet through work and go on to set up their own business as equal and active partners.
These situations each pose their own challenges. In the first case, you must decide how to end the silent partner’s involvement, if they really only held shares as a method of tax planning.
In the second case, you face a dilemma: does one partner leave the business entirely, or do you attempt to stay in business together despite splitting up your marriage or civil partnership?
Marcia Mediation provide family mediation services and professional workplace mediation – so if your spouse is your business partner, we are perfectly qualified to handle both issues at the same time.
The benefits of mediation include the ability to negotiate directly with one another in a less formal setting, without the intervention of a judge, and with an experienced mediator who always acts in the best interests of both parties.
Divorce mediation in general can reach a satisfactory outcome faster, with less solicitors’ fees and court costs, and with less stress for all concerned.
In complex cases, such as where there is a business to be divided or the departure of a director to be arranged, mediation is even more advantageous to clear the muddy waters and find a mutually agreeable, fair and sensible way to proceed.
If you would like to know more about how to divorce a partner when in business with them, contact Marcia Mediation for an initial consultation and we will be happy to discuss your specific circumstances.
Mediation shines in complex and unique scenarios, where a more flexible approach is needed than the courts can offer.
To take the stress out of your separation and dissolve or divorce with dignity, speak to Marcia Mediation today.
If you have any questions, call us on 07791 560 161 or fill out this form
