Does out of love mean out of business?
Most people who are in business are also in a personal relationship or will enter into one at some point. Statistics say that 75% of private sector businesses in the UK are classed as family businesses. They account for over 40% of private sector employment so that it makes sense to ensure their survival particularly in the event of a divorce or relationship breakdown. Let’s face it, this can be one of the most catastrophic events to affect a family and therefore potentially the business.
The best option is to make a considered plan at the very start of a relationship as to what might happen if all goes wrong. With the right legal advice at that time a complete strategy can be put in place not only as to how the business will be run and profits shared while the personal relationship is a happy one but to ensure that the business has continuity and can function normally in the event that the worst happens and the couple split.
But is all lost if no prior planning has taken place? The answer is no. However, it is again important to seek legal advice at the earliest stage possible. The main aim is to reduce acrimony and hostility and there are various different ways to discuss all those matters which will need to be dealt with. Principles can be agreed from the outset with regard to contentious matters like valuing the business and how it will be divided up thereby reducing the emotional and financial impact to a minimum.
If you are in the early stage of a relationship or are concerned that it might be breaking down and you have or are thinking about starting a business it is never too late to make provision!
If you would like any more information, please do not hesitate to contact Sue Leadbeater at Andrew & Co LLP’s Newark office on 01636 593511.