PROMOTION Protecting Your Assets How to safeguard your business during a divorce onsider this scenario: you set up a fledgling company and work hard to grow it. Then you meet the person of your dreams. As the company grows, your accountant's attention turns to tax planning. By this point, you have moved in with your soulmate and married. The accountants advise that by the time a relationship has broken down, it's too- late to take pre-emptive steps, leaving you with only reactive options. When talking taxwith your accountant, test the end point of the advice, rather than the immediate discernible fiscal benefit. Ask about the worse case scenario, consult you to appoint your soulmate as an employee for "tax" reasons, gift shares to said soulmate, and appoint them as with a corporate lawyer and always consider if it is necessary to look at additional protection by way of a pee-or a post-nuptial agreement if you marry If you take one piece of advice on safeguarding your business, it shoukd be this always focus on asset protection at Always focus on asset protection from the outset a director or company secretary. That soulmate becomes soulless and you separate. What next Without clear agreements in place, i is not uncommon for one party to ask the court for help to divide the available the outset. A well-drafted shareholders agreement will regulate the relationship between shareholders, record how the company is run, how shares are owned and what happens when things go wrong Many of us becoene enveloped in a bubble of positivity assets within the context of divorce proceedings. Since corporate interests are treated as a resource of one or both of the parties under section 25(2) (a) Matrimonial Causes Act 1973 (MCA 1973), the court can utilise it to achieve a fair outcome. The first step is to establish the value of the at the outset of a new project, or the beginning of a new relationship and we don't stop for a moment to imagine business, before then deciding how the asset is treated in the eventual settlement. Without a shareholders agreement, disputes are more difficult to resolve. If insufficient detail is recorded that the shine may fade and reality bites. Whilst we don't have a crystal ball, we do have mirrors that should encourage you to reflect, particularly at the incorporation stage, on what difficulties you might encounter in the future as a business owner. within the articles of association, you will quickly learn If you would ike further acvice on setting up a pre-nup, shareholder agreements or protecting your assets get in touch with Jule-Ann Harris directly Julie-annharris@coffinmew.co.uk coffinmew.co.uk CoffinMew PROMOTION Protecting Your Assets How to safeguard your business during a divorce onsider this scenario: you set up a fledgling company and work hard to grow it. Then you meet the person of your dreams. As the company grows, your accountant's attention turns to tax planning. By this point, you have moved in with your soulmate and married. The accountants advise that by the time a relationship has broken down, it's too- late to take pre-emptive steps, leaving you with only reactive options. When talking taxwith your accountant, test the end point of the advice, rather than the immediate discernible fiscal benefit. Ask about the worse case scenario, consult you to appoint your soulmate as an employee for "tax" reasons, gift shares to said soulmate, and appoint them as with a corporate lawyer and always consider if it is necessary to look at additional protection by way of a pee-or a post-nuptial agreement if you marry If you take one piece of advice on safeguarding your business, it shoukd be this always focus on asset protection at Always focus on asset protection from the outset a director or company secretary. That soulmate becomes soulless and you separate. What next Without clear agreements in place, i is not uncommon for one party to ask the court for help to divide the available the outset. A well-drafted shareholders agreement will regulate the relationship between shareholders, record how the company is run, how shares are owned and what happens when things go wrong Many of us becoene enveloped in a bubble of positivity assets within the context of divorce proceedings. Since corporate interests are treated as a resource of one or both of the parties under section 25(2) (a) Matrimonial Causes Act 1973 (MCA 1973), the court can utilise it to achieve a fair outcome. The first step is to establish the value of the at the outset of a new project, or the beginning of a new relationship and we don't stop for a moment to imagine business, before then deciding how the asset is treated in the eventual settlement. Without a shareholders agreement, disputes are more difficult to resolve. If insufficient detail is recorded that the shine may fade and reality bites. Whilst we don't have a crystal ball, we do have mirrors that should encourage you to reflect, particularly at the incorporation stage, on what difficulties you might encounter in the future as a business owner. within the articles of association, you will quickly learn If you would ike further acvice on setting up a pre-nup, shareholder agreements or protecting your assets get in touch with Jule-Ann Harris directly Julie-annharris@coffinmew.co.uk coffinmew.co.uk CoffinMew