Coming to Grips With Asset Valuation and Tax Issues in Divorce Finance
For some divorcing couples, the advice of specialist family law solicitors will be necessary to deal with the complexity of the property division issues they face for any of a number of reasons: family business activity, extensive investment assets, tax considerations, or the commingling of personal and business assets. If the divorce finance issues in your case present problems of scale or complexity, contact Boscos Solicitors in Leeds.
Our law firm works with people in Yorkshire, Greater London and throughout England on the range of problems characteristic of affluent or entrepreneurial families when their marriages break up. Our goal in each case is to help our clients reach satisfactory property agreements that address immediate needs while looking ahead toward continuing financial security. When necessary, however, we can present your case in court to resolve intractable disputes through ancillary relief proceedings or other action.
Lawyers for Valuation and Distribution of Family Business Assets in UK Divorce
Business assets in particular can present difficulties in divorce property division. In order to reach settlement on the divorce finance issues that concern them, several questions must be addressed: Did both spouses work more or less equally in the family business? Were their capital contributions roughly equal? Was the business established and profitable prior to the marriage? Are both spouses liable under guaranties of business debt? Does either spouse advocate sale of the business or liquidation of the assets to fund a property settlement? Answering these questions sheds valuable light on the ultimate question: How much must one spouse pay the other to buy out a marital interest in a family business?
Tax considerations will also weigh heavily in the division of a complex marital estate. The larger the marital estate, the larger the potential tax bill when assets are sold off to fund divorce settlement payments. Our law firm's ability to advise clients about the timing of asset sales, the tax attributes of particular assets and the management of prospective tax liability can save both spouses a great deal in capital gains tax exposure.
From a legal perspective, the objective is to reach a property settlement that is fair and equitable to all concerned under the specific circumstances of the case. Whilst a roughly equal division of marital property will often be desirable, the differing needs of the spouses and any disparities in their capacity for financial independence can significantly affect the outcome, and the financially weaker spouse might end up with either a larger portion of the marital property or a substantial maintenance payment, and sometimes both.
Careful Analysis of Your Options on Divorce Finance Issues
Our lawyers begin with a comprehensive assessment of the assets and liabilities, whether or not they can properly be characterised as marital property. Even though an asset might not be subject to division in divorce, it can be considered as a resource available to one spouse while considering the size of the other spouse's share in marital property. We then work with our client to develop an opening property settlement proposal that reflects our client's goals while taking full account of the likeliest outcomes if the matter were to go to court.
For further information about our experience with business valuation and tax issues in UK divorce, contact Boscos Solicitors in Leeds or Wetherby.
