If you own a business, property portfolio or other high-value assets and are facing divorce, protecting what you have built is likely to be a key concern. Understanding how courts approach asset division — and what steps you can take — is essential to achieving a fair outcome.
Can a Pre-Nuptial Agreement Protect Your Assets?
If you entered into a pre-nuptial agreement before marriage, any business or assets you owned separately may already be ring-fenced. Pre-nuptial agreements allow couples to agree in advance how assets should be divided if the relationship breaks down.
While pre-nuptial agreements are not automatically legally binding in England and Wales, courts will give them significant weight provided they meet certain criteria — including both parties receiving independent legal advice and making full financial disclosure.
If no pre-nuptial agreement exists, the court will determine how assets are to be divided.
What Counts as a Matrimonial Asset?
When dividing assets on divorce, the court distinguishes between matrimonial and non-matrimonial assets under the Matrimonial Causes Act 1973.
Matrimonial assets typically include:
- The family home
- Joint savings and investments
- Pensions accrued during the marriage
- Business interests built up during the marriage
Non-matrimonial assets may include:
- Assets owned before the marriage
- Inheritances received by one party
- Gifts from third parties
Non-matrimonial assets can sometimes be excluded from the financial settlement. However, this depends on the overall asset pool and whether both parties’ needs can be met from matrimonial assets alone.
Considering divorce and concerned about asset protection? Speak to our high net worth divorce team for confidential advice.
How Courts Divide High-Value Assets
The court has broad powers under the Matrimonial Causes Act 1973 to ensure both parties can maintain a reasonable standard of living after divorce. The starting point is typically an equal division of matrimonial assets, following principles established in cases such as White v White [2000] and Miller v Miller [2006].
However, where one party brought significant assets into the marriage — such as a family business or inherited wealth — the court may depart from equal division if fairness requires it.
Importantly, if there are insufficient matrimonial assets to meet both parties’ needs, the court can access non-matrimonial assets. Even assets you owned before the marriage may be utilised to ensure a fair outcome.
What Can Happen to a Business in Divorce?
Business assets often represent a significant portion of the matrimonial pot in high net worth cases. The court has several options available:
- Order the sale of the business and divide the proceeds
- Transfer shares from one spouse to the other
- Order a share sale between the parties at an agreed value
- Divide the business if this is practical and appropriate
- Allow one party to buy out the other’s interest, similar to how the family home might be dealt with
Which option the court chooses depends on the nature of the business, its liquidity, and whether a clean break is achievable.
How Our High Net Worth Divorce Solicitors Can Help
Protecting assets in divorce requires specialist expertise. Our family law team has extensive experience advising business owners, directors and high net worth individuals.
We can help you:
- Understand how the court is likely to treat your assets
- Negotiate a fair settlement outside of court where possible
- Represent you in financial remedy proceedings if required
- Advise on pre-nuptial and post-nuptial agreements
Contact our family law team today for a confidential consultation. Fill our the form below or call us on 0161 667 3686
About the author: Judith O’Brien, Partner, Family Law
Judith O’Brien is a Partner in our Family Law team and a member of Resolution, the organisation committed to a non-confrontational approach to resolving family issues. She holds the Law Society’s Advanced Family Law Panel qualification, recognising her expertise in both children law and financial matters arising from relationship breakdown.
With over 30 years’ experience in family law, Judith advises on divorce, financial settlements, pre-nuptial and post-nuptial agreements, separation agreements and children law matters including arrangements for contact and residence.
Solicitor, admitted 1997 | SRA ID: 176870
