Former billionaire Kerry Packer was once famously quoted as saying:
As the principal of one of NSW's most trusted chartered accounting firms, Alan McGillivray's experience and insights have been used by everyone from state and federal government agencies through to small business and individuals.
Divorce and Family Law - as a business owner you may be wondering, is my business classed as an asset when it comes to any claims? Will I have to sell the business? How will my situation change?
Often, the divorcing couple will disagree over the value of the company, and will require a professional business valuation to provide his or her expert opinion to help the court come to a conclusion of value.
The stress and heartache are reason enough reason to protect you, your business (and potentially your employees interests) from being subjected to family law property proceedings.
If you do nothing, any family law or divorce proceedings may impact not only your financial future but co-owners of the company.
Depending on your individual circumstances, your spouse may be entitled to as much as 50 percent of your business in a divorce.
Here's a few tips you might like to consider.
* Firstly, do not involve your spouse in the running of the business. Make sure there is a clear division between your married and business life. Keep business and family finances, assets, and banking arrangements separate.
* Ensure you appoint an independent valuer who can provide an accurate estimate of what the business is worth.
* Once the valuation has been performed, it can be used by the parties and their lawyers in property settlement proceedings.
* Be transparent! Australian Family Law Courts are generally very unforgiving towards people who may look like they are trying to hide assets.
* Consider putting your business and its assets in a trust or do the sums as to whether trading your share of marital assets, such as your house, for your spouse’s equity interest in the business is feasible.
Remember, if you are facing divorce you should always seek experienced professional advice.
Disclaimer: The information contained is general in purpose. The author is not a lawyer or family law specialist and nothing contained in this piece should be considered legal advice. Readers are advised to consult with a legal advisors before making use of any of the information in this article.
With more than 20 years experience, we service clients ranging from small businesses to medium sized enterprises up to $50M in turnover. Our goal is to help you achieve success in growing your business sustainably and profitably.Read More