‘til Covid-19 do us part
We’ve all seen the media articles referring to the increase in the amount of divorcing couples around the world during the Covid-19 pandemic. It is common to lay the blame at the door of a long period of lockdown, especially where there may have already been cracks in a slowly waning relationship. If you happen to be in this category, McAlister Family Law Partner Nicola Wilburn-Shaw has some advice.
“As we hope for a gradual exit following lockdown, many are looking about their lives and activities with caution, not just in terms of their relationships but also of the economic consequences. Financial circumstances will have a direct impact upon couples who are entering into, or are currently involved in, divorce. Whenever spouses divorce there follows a need to determine the division of matrimonial assets and/or finances. The courts must have specific information in relation to those assets which usually requires expert evidence by way of valuation.
Business interests and divorce
One problematic area will be business interests. As to whether or not such an interest will be affected (either adversely or positively), this will be dependent on a number of factors, such as the sector of operation. However, any business relies on its suppliers and it may be further down that chain that there are problems. It will be pivotal, therefore, that a competent expert is instructed so as to give an accurate valuation based on both a “business as usual” and a “during/post-Covid-19” basis.
Division of assets
Never has it been more critical to ensure you seek solid advice before embarking on divorce and/or where there is a dispute around the division of assets. You will need to ensure that your position is protected during this uncertain time. Caution should be applied to any spouse embarking on a sale of assets and/or where there may be the threat of winding-up a business.
You will require advice on the alternatives if the present moment is deemed simply not to be the best time to value and/or sell. It may instead be more appropriate for share transfer to take place within a business interest, and timing on that will be crucial to ensure you can capitalise on the tax relief available. This could be done with restricted or no voting rights, for example, and provides a good solution to the current unknown without resulting in a period of stalemate or a feeling of being trapped.”
