Sports Law Clinic FAQs – Family

A. Yes! It’s a common misconception that couples who live together have additional rights in the event of separation. However, this is incorrect. Married couples have an assumed right over the assets held by the other, whereas unmarried couples do not obtain any interest. It would be very difficult for anyone unmarried to assert such an interest unless expressly agreed. 

A. Small businesses are usually looked at by the Court in two ways:

1. Do they have a capital value and/or are they a stream for income? 

A lot of small businesses, including coaches, may work for themselves with no employees, in which circumstances it is unlikely the business has any capital value and the money received instead is treated similarly to any other income. 

2. If the business is larger/ more profitable, it may be seen to have a capital value which would need to be confirmed for the purpose of settlement (either by mutual consent or a formal valuation). The Court may then need to look at various issues concerning the business, including its liquid capital and the impact a sale could have on the owner’s own income. 

It’s recommended to seek specialist legal advice in that respect. 

A. Although the Court has the power to order the sale of the business (or a share of), this is usually the last option that the Court wants to consider and instead will try to offset its value against other assets of the marriage, such as equity in the marital home.

A. The Court’s preference when considering settlement is to ensure a clean break between the parties, meaning no lasting financial ties. It will therefore often look to see whether an agreement can be reached whereby the spouse’s shares are sold back to the business or spouse as part of the settlement. The Court can order their sale or transfer if required. 

We often find that for tax purposes, spouses are provided shares in a business. If you are having such discussions with your accountant or other professionals, it’s always worth raising what may happen in the event of separation and to consider whether this can be factored into a shareholder’s agreement.