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Even when a business is established prior to a
relationship, businesses can still be subject to a spousal claim under the
Property (Relationships) Act 1976. If
after three or more years spouses/partners decide to separate “relationship
property” can include the family home, income and/or property acquired during
the relationship – divided equally with limited exceptions. In contrast “separate property” can include
property acquired prior to the relationship, gifts and inheritances (which are
not generally divided) but may be the subject of compensatory awards.
A business (whether established during or prior a relationship) may be vulnerable to spousal claims with key questions to be asked including:
Useful tips to help you achieve greater protection for your business include:
Separation can be an emotional and financially challenging experience with so much to think about - even more-so for business owners with other stakeholders to consider. Whether you are “in between” relationships, in the early stages of a relationship, or contemplating separation, obtaining sound legal advice, with the right preparation, will help you work through the process more quickly thereby obtaining a settlement which allows your business to continue to prosper.