{"id":9889,"date":"2023-02-11T12:17:31","date_gmt":"2023-02-11T12:17:31","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=9889"},"modified":"2024-02-15T09:12:51","modified_gmt":"2024-02-15T09:12:51","slug":"limited-company-and-divorce","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/limited-company-and-divorce\/","title":{"rendered":"Is my limited company protected if I get a divorce?"},"content":{"rendered":"

Generally, a limited company is not protected from divorce, regardless of whether it is set up before or after a marriage takes place. During divorce proceedings, a company is treated just like any other financial asset, which means that company shareholdings and profit are considered matrimonial assets.<\/p>\n

In this post, we look at the way the courts view business interests during a divorce, the different options available for negotiating marital assets, and the practical steps you can take to protect your limited company.<\/p>\n

This post is written with reference to the laws in England, Wales, and Northern Ireland. In Scotland, the courts will only include business interests in the matrimonial pot if they are acquired during the marriage.<\/p>\n

Limited companies and divorce<\/h3>\n

When a couple chooses to divorce, the courts will usually consider business interests as part of the relevant assets of the marriage. This applies to all types of businesses, including sole traders, partnerships, and limited companies<\/a>.<\/p>\n

However, this doesn\u2019t necessarily mean that the business itself has to be split up and shared between both spouses. Every case is different, and what happens to a company depends on several factors, including:<\/p>\n