Do you own a limited company? Or maybe your spouse is the founder of one.
Whatever your circumstances, it’s only natural to be concerned about the degree of legal protection a limited company has if you’re going through (or are expecting to go through) a divorce.
Fortunately, the expert team of divorce solicitors here at Freeman Jones Legal is on hand to help clear the confusion.
Below, we answer your limited company-related divorce enquiries to prepare you for every eventuality.
Is a UK limited company protected from divorce?
Is a limited company protected from divorce? No, a limited company is typically not protected from divorce in the UK.
That is because its revenue is likely to have provided your household with income.
Given the assets and income of both parties are taken into consideration in UK divorce, these shares are likely to be viewed as a matrimonial asset and split appropriately between the parties.
Will divorce force you to sell a limited company?
In many cases, a UK court will not view the selling of a limited company as the best option during divorce – especially if it provides you with a significant income.
Instead of ordering you to sell the business and/or shares, a court may order a percentage of shares to be transferred to your spouse or exchange your ownership of the limited company for another matrimonial asset.
As a result, while you may not be forced to sell the limited company, you may be required to make your spouse a stakeholder, giving them more control over the business.
Get in touch with Freeman Jones Legal
For tailored advice based on your specific divorce case, don’t hesitate to contact the experienced team of divorce solicitors at Freeman Jones Legal.
We have for years helped our clients to obtain a fair financial divorce settlement and receive sole ownership of the assets that matter most to them.
A world away from legal jargon, confusing costs, and unhelpful customer service associated with many sub-par legal firms, we aim to make the often-difficult process of divorce as stress-free as possible.
While we can support you with court action, we aim to help shorten and speed up the divorce process by helping you to achieve a favourable financial divorce settlement though mediation, skilled negotiation, or dispute resolution first.
To learn more about the way we work or to discuss your limited company divorce preferences with a member of our team, please don’t hesitate to give us a call on 01244 506 444.
If you’d rather speak to a Freeman Jones Legal divorce solicitor face-to-face, we welcome visits to all our branches. You can find us in Wrexham, Liverpool, Warrington, and even North Wales.
Once we’ve received your enquiry, you can rest assured we’ll be in touch soon to arrange your free, no-obligation consultation.