Divorce and Your Small Business: What Business Owners Should Prepare For

For many small business owners, divorce feels like a personal matter that should have little impact on the business they have worked hard to build. Unfortunately, that is not always the case.

Whether you run a limited company, work as a sole trader or operate a family business, your business interests may become relevant during financial remedy proceedings. Understanding this early can help reduce unnecessary stress and allow you to make informed decisions.

Your business may form part of the financial picture

The Family Court considers the parties' overall financial circumstances when deciding how assets should be divided. If your business represents a significant part of your wealth or income, it is likely to be considered as part of that process.

This does not automatically mean your business will have to be sold or divided, but it does mean that accurate financial information is likely to be important.

Keep your records organised

Business owners should ensure that their financial records are up to date and well organised.

Depending on your circumstances, this may include:

• Company accounts
• Tax returns
• Business bank statements
• Management accounts
• Details of business assets and liabilities

Having clear records can make the disclosure process more straightforward and reduce unnecessary disputes.

Avoid making major business decisions without advice

When relationship breakdown occurs, some business owners are tempted to move money, transfer assets or change company structures.

In many cases this can create more problems than it solves.

If financial proceedings are expected, it is usually sensible to obtain appropriate professional advice before making significant changes to the business.

Different professionals have different roles

Family cases involving businesses often require input from more than one professional.

For example:

• An accountant may assist with financial records or valuations.
• A family solicitor can provide legal advice.
• A corporate lawyer may advise on company structures or shareholder agreements where appropriate.
• A McKenzie Friend can help litigants in person organise documents, prepare court paperwork and better understand the court process.

Each professional has a different role, and working together often provides the best outcome.

Preparation reduces stress

Many business owners find the Family Court process unfamiliar and overwhelming, particularly when trying to continue running a business at the same time.

Good preparation, organised paperwork and realistic expectations can make the process significantly easier to manage.

Seeking guidance early can often help prevent small issues from becoming larger problems later.

About the author

Gergely Fried is the founder of Everyman Justice, providing practical McKenzie Friend support for litigants in person across England and Wales. Everyman Justice helps parents and business owners prepare documents, understand Family Court procedures and present their case with greater confidence.

To learn more about McKenzie Friend support and representing yourself in the Family Court, visit:
Everyman Justice McKenzie Friend Guide