This article by Canadian family lawyer Nathalie Boutet recently appeared in Wealth Professional Magazine (a Canadian publication).
Although the legal framework of divorce is different here in the UK, the article raises some interesting points about separating during Covid times that are just as applicable to our jurisdiction.
Marital breakdown involving couples that run businesses together can be complex and painful at the best of times but the economic uncertainty caused by the pandemic makes it even harder.
With a family business often being the only source of income, as well as being the main family asset – for example farms where the family home forms part of the business – unpicking the finances on such a divorce is rarely straight forward. Working with an experienced lawyer, and with expert valuers, accountants and tax specialists is key, as is doing everything possible to find a constructive rather than destructive way of separating.
Saving family businesses from divorce during COVID-19
Why previous norms around income predictions and business valuations no longer exist, resulting in more complex family disputes
The pandemic has already taken a toll on both the economy and marriages across the country, and now with a second wave, those numbers are likely to rise. In fact, one in seven small businesses are at risk of going under as a result of COVID-19.
Previous norms around income predictions and business valuations no longer exist, resulting in more complex family disputes. Particularly for family-owned businesses, reducing the negative impact of divorce on the family itself, staff and the day-to-day operations is critical.
First steps can impact the outcome on family and business
A family business is both an asset and source of income sometimes for more than one family generation. But upon separation, people can sometimes bring it harm, whether deliberately or inadvertently.
While its important for couples to seek legal advice quickly, the type of lawyer that is c...