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Lawry
Lawry, Solicitor
Category: Family Law
Satisfied Customers: 380
Experience:  Expert
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Thanks for your answer to my earlier question. I presume

Customer Question

Hello and thanks for your answer to my earlier question. I presume that you can still get access to my previous question so that you have the background to my case?I just wanted to ask a question about dividend split between my wife and I.I own 76% of the equity in my company and my wife owns 24%. We are going to attend an MIAM mediation meeting soon and I wonder whether it would be normal for the dividends from the company to be split according to the equity holding?Please advise?
Submitted: 15 days ago.
Category: Family Law
Expert:  Virtual-mod replied 14 days ago.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Customer: replied 14 days ago.
Happy to wait for an answer.
Expert:  Lawry replied 13 days ago.

Hi,

I was away for a couple of days and have just seen your question.

In England, business interests will generally be considered by the court as matrimonial assets, and their value will therefore need to be added to the matrimonial pot.

This is irrespective of which spouse founded or ran the business.

When it comes to valuing a business, this will normally be done if you and/or your partner own a business outright or is a significant shareholder. This valuation will be taken into account when the court decides upon a financial settlement. Either of you can arrange a valuation for shared business interests, but usually if just one person owns it they would be the one to request a valuation.

The valuation can be a complex process as it depends upon:

  • Income
  • The standard of living that the business supports
  • Assets such as property, vehicles etc.
  • The value of personal and business pensions
  • Whether or not it is possible to extract capital sums from the business
  • Whether or not it is possible to borrow money against the business or its assets
  • The ownership structure of the company

As it is so complex, a specialist accountant will usually need to be consulted for an accurate valuation.

If you can agree with your wife on the value of the business, then the process will be more straightforward and less costly.

Once the business is valued, how it is treated by the court is dependent on the ownership structure. If, for instance, as it is owned outright by both of you, it will be treated as another marital asset.

So the equity holding will be a relevant factor but not necessarily the deciding one.