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A business born at home needs to have more protection in place than many others, as the very nature of a family business relies on the strength of the family.

In the sad eventuality of a marriage failing, there are often hard feelings which can then impact on the running of a business. The value of a family-owned business is likely to be taken into consideration when negotiating a divorce settlement, therefore if both parties own equal shares, no matter who has done “more of the legwork”, then the value and income generated would be considered matrimonial property to be divided fairly between the parties.

Here are some key steps to safeguard your assets:

• Open communication: discuss the future of the business and each person's expectations and contributions.
• Legal agreements: ensure there are clear legal agreements in place, such as a shareholder agreement or partnership agreement, so that the roles, responsibilities, and exit strategies are outlined.
• Ownership structure: even if a business is not conventionally a family business, the corporate structure may tell a different story. An accountant may advise that making your spouse a partner in the business is beneficial for tax minimisation, but this could lead to problems in the future if the marriage ends.
• Succession planning: If the separation involves the departure of a key family member, develop a succession plan to ensure the continued success of the business.

It is important to think about business assets at the start of a relationship and to consider what may happen in the future, in order to keep both the business safe and any separation proceedings as straightforward as possible should things not work out as planned.