If you or your former partner own a business when you divorce, it will need to be determined what share of the business each party is to receive.
A business valuation will be required to decide this amount, and assets will be divided depending on the business’s structure.
When a couple separates, business assets are often considered as part of the property settlement pursuant to the Family Law Act 1975 (Cth). Whether the business is included depends on factors like ownership, contributions, and financial value and can be a complex part of property settlement process. It is imperative that you obtain legal advice as early as possible in the process. Before any work begins, we provide a clear cost agreement outlining all expected fees. If anything changes, we’ll communicate with you immediately—no surprises.
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If both partners contributed either financially or otherwise, and/or the business was acquired during the marriage/relationship it may be deemed to be a shared asset. Even if the business was established prior to the marriage/relationship and operated independently, it may still be considered a shared asset.
Usually, an independent valuation is required to determine the business value. There are also various methods of valuations, which include:
Sole traders, partnerships, companies, and trusts have different legal implications.
Courts consider direct contributions (e.g., financial investment, work in the business) and indirect contributions (e.g., supporting the spouse’s career by managing household duties).
There are several ways business assets can be divided:
Dividing business assets in family law requires careful assessment of ownership contributions, financial value and future viability. Seeking legal and financial advice early in the process is crucial to achieving a fair outcome and ensure the impact of the business operations is limited.
Empower yourself and your loved ones by proactively planning for unforeseen events. Synergy Legal is your trusted partner in securing peace of mind.
If you currently own your home, there are generally three options for home ownership once you have separated from your spouse.
This involves selling your portion of the home or investment property to your former partner for a cash settlement. We will manage this process by transferring ownership documents and ensuring the contract is formalised.
If you can manage the mortgage on your own and wish to stay put, we can help you to buy out your former partner.
There are a number of options to ensure you can stay in your property after separation, such as refinancing or increasing the mortgage repayment period.
If both parties wish to sell the home, we can manage the process end-to-end and liaise with mortgage brokers, real estate agents and lenders on your behalf.
We can also help you to determine what portion of the profits you’ll receive through the sale.
Going through a separation can be difficult, and dividing property fairly is a crucial step. At Synergy Legal, we provide clear, supportive guidance to help you reach a fair and legally sound property settlement.
Property settlement is the legal process of dividing assets and liabilities after a separation or divorce. It applies to both married and de facto couples and considers financial and non-financial contributions made during the relationship.
A fair property settlement is key to securing your financial future. Contact Synergy Legal today for a confidential consultation.
Empower yourself and your loved ones by proactively planning for unforeseen events. Synergy Legal is your trusted partner in securing peace of mind.
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