Barker Gotelee

Facing up to Business when Divorce Looms

Farmers and other married couples who run businesses together are particularly vulnerable to relationship breakdown.  Long working hours, difficult working environments and financial uncertainty can be stressful and have a direct impact on married life.  Where couples cannot resolve their issues and divorce is the only option, individuals become faced with the reality of losing their partner and potentially their livelihood.  Therefore careful consideration needs to be given in relation to the continuation/sale/transfer of the business. If one person has always been the controlling force in the business it is often the case that that business could not survive without that person’s input or expertise.  In these circumstances it is logical that the other individual transfers their share in the business to that person.  Of course that person would need to be compensated for giving up their share in the business, regular income stream and if a farming business, potentially their home.  In matrimonial proceedings the compensation could range from monthly maintenance to a larger share of the pensions or available capital.  It will largely depend on what is in the matrimonial pot and the needs of both the parties. Where a transfer or sale of the business is not appropriate, consideration should be given as to whether the parties could continue the business together.  If this is an option it is imperative that their legal advisors assist as much as possible with helping the parties move forward in an amicable and conciliatory way. The traditional approach to settle a divorce is by way of negotiation through solicitors and if unsuccessful by way of court hearings.  However, if parties wish to continue in business or simply resolve their issues by direct communication, there is another way. Collaborative law is a process that uses a series of meetings between the couple and their legal advisors to resolve the issues in a way that suits them both.  The idea is that the couple are able to reach an agreement that they are both happy with by negotiation.  By using collaborative law the settlement can be more tailored to the parties individual circumstances as they will not be bound to the restrictive remedies of the court.  The emphasis is on financial security for both parties through better communication, which ultimately leads to a decrease in negative emotion and an enhanced control for the couple over the process and outcome. Katie Beaven © Barker Gotelee