This website uses cookies to store information on your computer. Some of these cookies are used for visitor analysis, others are essential to making our site function properly and improve the user experience. By using this site, you consent to the placement of these cookies. Click Accept to consent and dismiss this message or Deny to leave this website. Read our Privacy Statement for more.
WIBN Blog
Blog Home All Blogs

Why Prenuptial Agreements are an Empowered Choice for Women

Posted By Lucy Hart, Director, 23 January 2024

In an era where financial independence is paramount, an increasing number of women are taking proactive steps to safeguard their assets through Prenuptial Agreements. The notion of unbridled romance is being challenged as more women recognise the need to protect themselves from potential heartbreak-induced financial setbacks.

Credit card bills, substantial legal costs and eviction from their residence are common experiences of women navigating the aftermath of failed marriages.

Heartbreak, it seems, can come at a steep cost. A recent survey by Scottish Widows revealed that one in seven people in Britain would contemplate marrying for financial security. The rising trend of men making claims on their wives' wealth in divorce underscores the changing landscape of relationships. With one in ten marriages in the UK ending in divorce within five years, women are increasingly opting for Prenuptial Agreements to ensure their financial well-being survives the demise of romance.

Lucy Hart, Director at Sinclair Law, notes the evolving societal perspective, stating, "We're moving on as a society where women are a bit more realistic about relationships and whether or not they're going to last long term." The shift is attributed to the increasing financial independence of women, particularly those marrying later in life, prompting a natural inclination to protect accumulated wealth.

Lucy advises that, “A well-structured Prenuptial Agreement can prove invaluable. It is a legal contract entered into before marriage, covering the division of property, assets, and potential spousal support in the event of a divorce. Although not 100% binding in England and Wales, prenups often act as influential frameworks, reflecting the understanding between partners during happier times and the court will only depart from a well drafted and fully considered prenup in exceptional circumstances.”

Prenuptial Agreements were once associated primarily with high-profile marriages and substantial assets. However, today, individuals with more modest incomes are increasingly considering Prenuptial Agreements.

The current economic climate is identified as a significant factor driving the surge in Prenuptial Agreement enquiries. Regardless of background or profession, people are recognising the importance of safeguarding their hard-earned wealth. This sentiment particularly resonates with female entrepreneurs, business owners and professionals accustomed to binding agreements.

Lucy Hart advises that, “The pragmatic approach many of our female business owner clients take emphasises that Prenuptial Agreements are about financial certainty and protection from potential debt-related complications. Transparency is crucial, revealing that a prenup can serve as a litmus test for the sincerity of a partner's intentions. I believe that discussing and formalising financial arrangements before marriage is a responsible decision that does not diminish the depth of love and commitment between partners.

Prenuptial Agreements need not be deal-breakers. Advocating for careful negotiation and early agreement, I envision prenuptial agreements as documents tucked away, gathering dust, while marriages thrive. I advise women to be resolute in protecting their finances and I encourage a pragmatic approach.”

Love may be blind, but in a world where financial independence is crucial, it's wise not to let romance obscure the importance of being financially prepared and protected.

For a free 30-minute consultation contact Sinclair Law Solicitors today on 01625 526 222 or visit www.sinclairlaw.co.uk

Tags:  Divorce  family law  marriage  prenup  prenuptial  wedding  women 

PermalinkComments (0)
 

Financial Implications of Divorce for Women Business Owners

Posted By Lucy Hart, Director, 16 November 2023

Women entrepreneurs have made remarkable strides in the business world, displaying resilience, determination, and innovation. However, when faced with divorce, they often encounter unique challenges, especially concerning their businesses. Divorce is a significant life event that can have far-reaching financial implications. For women entrepreneurs, the complexities of separating personal and business assets can be daunting. In this blog, we will explore the unique challenges faced by women business owners during divorce proceedings and provide valuable insights on how to navigate the financial implications effectively.

Business Valuation:

In most cases, businesses and their value are included within the assets to be shared within the divorce settlement, even if one spouse has never been involved in the business. If the business is considered a marital asset, it will be subject to division between the spouses. One of the primary challenges women business owners encounter during divorce is determining the value of their business. Business valuation methods can vary, and it's crucial to choose the right approach tailored to the specific type of business. Factors like revenue, assets, intellectual property, and market trends must be meticulously analysed. Engaging financial professionals with expertise in business valuation can provide an accurate assessment.

"Divorce can have significant financial implications for women business owners. It's essential to assess the value of the business accurately and fairly. Proper evaluation is key to ensuring an equitable division of assets."

Protecting Business Interests:

Safeguarding the business is paramount. Legal documentation plays a pivotal role in protecting a woman's business during divorce proceedings. Having well-drafted contracts, partnership agreements, and clear ownership records can prevent disputes and streamline the division of assets. Updating these documents regularly ensures that the business's interests are protected, even in the event of a divorce.

"One common challenge women face during divorce is maintaining the stability of their businesses. It's vital to plan ahead and seek legal advice to safeguard your business interests. Collaboration with financial experts can help assess the business's value and determine the best strategies to protect it." - Lucy Hart, Family Law Solicitor and Director of Sinclair Law.

Spousal Support:

Women business owners may be concerned about the financial obligations related to spousal support. During divorce proceedings, the court considers the financial contributions of both spouses to the marriage. It's vital to maintain detailed financial records, clearly showcasing the business's income, expenses, and profits. This transparency helps in negotiating fair and just support terms, ensuring the sustainability of both parties’ post-divorce.

Tax Implications:

Divorce can have significant tax implications, particularly when dividing assets or selling the business, such as capital gains tax. Women business owners should consult with tax professionals to understand the tax implications of dividing assets, selling the business, or transferring ownership. Proper tax planning can minimise the financial impact of divorce.

Planning for the Future:

Post-divorce, women business owners need to reassess their business goals and financial strategies. Creating a solid business plan, revisiting financial projections, and exploring growth opportunities can help rebuild and strengthen the business. Additionally, seeking financial advice to manage personal finances and investments is crucial for long-term stability.

Whilst you cannot prevent your business interest being included in a divorce settlement, you can protect your business in a divorce in the following ways:

  • A Post Nuptial Agreement or Separation Agreement which can ringfence business assets and may help to limit acrimony in the future;
  • Keep the household finances separate to the company as this can assist on a practical basis;
  • Sacrifice other assets as part of the overall divorce settlement – this is known as offsetting. It is beneficial to a spouse wanting to retain control of their business or business interest.

Lucy says, "Entrepreneurs often invest significant time and effort into their businesses, making it a deeply personal endeavour. Emotions can run high during divorce, making it essential to remain focused on the practical aspects. Separating emotions from business decisions is critical for making informed choices that will shape your financial future." 

Collaborative divorce processes, such as mediation or arbitration, can be beneficial for women business owners. These methods encourage open communication, allowing couples to reach agreements amicably. Maintaining a cooperative approach can lead to more favourable outcomes for both parties involved.

Divorce can be a challenging journey for women business owners, but with the right legal guidance and financial planning, it is possible to navigate the process successfully. By approaching divorce with a strategic mindset and seeking expert legal advice, women entrepreneurs can protect their businesses and secure their financial future.

For a free 30-minute consultation visit www.sinclairlaw.co.uk or call 01625 526 222.  Offices based in Wilmslow and Bramhall.

 

Tags:  business owner  divorce  family law  financial settlement  post nuptial agreement  separation  separation agreement  women in business 

PermalinkComments (1)
 

Divorce Spurred Me To Start My Own Busienss.

Posted By Athena Hall, Bookkeeper, 17 March 2022

The defining moment in my marriage came the night my father died. My best friend and the person who had always believed in me and knew I could do anything if I put my mind to it had just left me. I hadn’t felt loved or cared about for, by my husband, in many years. I knew then that I couldn’t spend the rest of my life married to him but I had a 12 year old daughter to care for.

Making Plans

Three years later after two bouts of depression and counselling, I started to make plans in my head. I’d worked for a bank for 15 years prior to having my daughter but hadn’t worked since other than volunteering at her primary school. I’d had a small cattle rearing business with my father-in-law and had kept the books for that business, so I decided to do my bookkeeping exams. I still had no plans to leave my husband until our daughter had gone to university.

Events, however, overtook after I had a break away on my own. So in December 2008 I decided enough was enough and asked for a divorce.

A New Chapter

That was the start of an awful period in my life. He took my request for divorce badly and retaliated by telling lies to some members of my family, this caused great distress to all and although some relationships were mended, one sadly could not be restored. However after a lot of hard work on my behalf I am now back in touch with my cousin and we are rebuilding our relationship.

A New Start

The marital home eventually sold and in November 2009 I moved 200 miles away to start a new life. I only knew one person here and had no job.

As I hadn’t worked for so long I had a very limited chance of getting a job. Add to that my daughter was living with my mother and I was visiting them about every 2 to 3 weeks. The M6 and I became very good friends. Once the house was straight, I concentrated on my studies and in April 2010 I passed. I now have letters after my name. Dad would have been proud of me. Even with my qualifications no-one wanted to employ me. My money was running out, so I had to do something pretty quickly. How difficult could it be to work for myself?

Striking Out On My Own

So my bookkeeping business was started. First thing was to find clients. I put an advertisement in the local paper for a month, but nothing came of that. So I joined the local Chamber of Commerce and the lady who completed the forms suggested I go to a free networking event they were hosting the next week. I had never done anything like that in my life; I was terrified, but I went and met two very nice ladies who were as nervous as me and we spent most of the evening chatting.

I then contacted a local woman’s business organisation who gave me some marketing ideas which weren’t really suitable for my business but they invited me to a Chamber of Commerce breakfast club that is held monthly. Someone from the organisation would be there to introduce me to people. At your first meeting you can give a 30 second talk introducing yourself and your business.

Yes I did it!

I was nervous and not sure that it was the greatest 30 seconds ever but it did get me my first client. I now table host at this event, which entails me making sure that everyone on my table gets the chance to pass their cards around and tell everyone on the table about themselves and their business.

I have made friends from this networking event and been told about other events which I now go to and enjoy.

You never know where a potential client will come from.

It might not be someone you meet at an event but they might know someone who does need your services. In the meantime my daughter built a website for me and I have found a few clients from there. When I first started I took on any client that asked me but I have learnt that if I don’t like them or their demands for my time are unreasonable then they aren’t worth keeping on my books.

I have had to toughen up as clients can be very unpleasant and it’s hard not to take it personally.

You really do need a business plan before you start out and to belong to an association that specialises in your business. Do your research about the type of business you want to start and how much other people are charging.

I still do networking and am enjoying it. You meet so many nice people and learn about their business.

Always have a strap line for the end of your 30 or 60 seconds.

It hasn’t been easy and I’ve had many a Monday meltdown. I have changed my mind set to one of positive thinking all the time. That can be challenging at times.

Photo credit Athena Hall

Tags:  Bookkeeper  Divorce 

PermalinkComments (0)