As a divorce solicitor specialising in resolving financial settlements, I spend a lot of time looking at business assets within financial court proceedings when it comes to family business and divorce. Many people assume that if they split up from their spouse that their business assets are ring fenced and won't form part of the financial settlement. That isn’t the case. As part of the divorce proceedings the court can order the valuation of a business and order the sale or transfer of company shares, or it can force the company to come up with money to fund a settlement. It is therefore important to get specialist advice from a Manchester divorce solicitor on business assets within divorce proceedings. Tips for family business and divorce: Assign a correct value to the entire family business on divorce. Should the business value be net assets, and if so, are the assets valued correctly in the business accounts? Or should the valuation be a multiple of profit, in which case is the profit over or under-stated in the accounts, and what is the correct multiple? Should the opinion of the business’s accountants be relied upon, or does an independent accountant need to be brought in; Find out how to assess the value of a spouse’s shares in the family business on divorce. This is particularly difficult if they are a minority shareholder, or where other family members hold the other shares; A spouse who was a ‘sleeping partner’ in the business during the marriage, in order to maximise tax advantages, may suddenly ‘wake up’ on divorce and attempt to interfere with the running of the company, or challenge past transactions; Where a spouse is also an employee of the family business the spouse has rights and claims as an employee, as well as potential spousal maintenance claims; Any dispute between spouses over a family business tends to unsettle the other directors, shareholders and employees of the business, and could even destroy the business itself; What is the right solution to the spouse’s claims against the business? Should they get shares, or cash? If cash is preferred, how can it be released from the family business on divorce (there are many ways) and the tax treatment of each method needs to be weighed up. [related_posts] Family Business Protection and Divorce  When a husband and wife agree to separate but want to continue to operate the family business together, it is vital that this agreement is properly documented to avoid disputes and to minimise the risk of a future falling out. Protection can be in the form of written employment contracts, a shareholder agreement and a family financial court order. These documents provide checks and balances, such as recording the agreed policy on declaring dividends or the policy on employing new staff ensuring both spouses have legal protection. With these documents in place, many spouses are able to successfully work together even if they can't continue to live together. Prenuptial Agreements and Protecting the Family Business on Divorce   As a Manchester divorce solicitor, I am often consulted by business owners where they (or one of the other shareholders) are getting married, and they want to protect the business from the kind of risk and uncertainty which any divorce would create. A prenuptial (or postnuptial agreement if a couple are already married ) can sometimes be the perfect solution, as prenuptial and postnuptial agreements can potentially ring-fence the business completely from claims on divorce, or if this is not possible, the prenuptial agreement or postnuptial agreement can have a number of provisions which protect the family business on divorce. When it comes to the business of divorce it pays to get the right help from a qualified and experienced divorce solicitors like Evolve Family Law.

In an ideal world, parents will agree on an the appropriate amount of child maintenance using the child support agency calculation prepared by their divorce solicitor or the online calculator on the child support agency website. Many parents use the child maintenance figures as a rough guide as to how much child maintenance should be paid recognising ,for example, that if one parent agrees to pay for all the children’s clothes, haircuts  and school trips then expecting them to pay the full amount of a child maintenance calculation may not be appropriate. In other family situations a parent will recognise that it is fair that he or she pays a bit more than the child maintenance calculation to help pay for extras such as ballet or riding lessons. Child maintenance payments should be reconsidered if incomes and parenting arrangements change. Sadly we don’t all live in an ideal world and some parents have to apply to the child support agency for an assessment of how much child maintenance should be paid. That is either because they can't reach an agreement on how much child support should be paid or payments aren’t being made. What is child maintenance based on? As a divorce solicitor I have heard parents express shock at the amount of a child support agency child maintenance assessment. Sometimes that is because the parent hasn’t appreciated that child maintenance is based on: The payer’s gross income; The number of children that the payer pays child maintenance for; The number of overnight  contact visits the payer has with the children; The number of other children living in the payer’s household. When calculating child maintenance the children’s needs and the payee and payer’s household bills aren’t taken into account in the child support agency calculation. On other occasions the shock at the child support agency child maintenance figure is based on a parent’s knowledge of their partner’s income and lifestyle. If a parent doesn’t think that a child support agency child maintenance assessment is right then they should consider: Asking the child support agency for a revision or mandatory reconsideration if they think the child support agency got something wrong such as the payer’s income or the number of overnight contact visits; Asking the child support agency for a variation; Appealing against the child support agency assessment; If parents are or were married (and there is no financial clean break order in place) applying to court for spousal maintenance. This may be an option if the amount of the child support agency child maintenance payments combined with the household’s other income or potential earnings won't meet basic needs and bills. Grounds to vary a child support agency child maintenance calculation   There are four potential grounds to apply for a variation of a child support agency child maintenance assessment: Assets over £65,000 – the payer’s home isn’t treated as an asset. The value of investments , savings and any equity in a second home would be relevant; Income not taken into account – usually this ground is used if a payer can set their own income because they are a company director and can declare dividends or use a directors loan account to fund their outgoings; Diversion of income – this ground can be relevant where a payer owns their own company and employs a new partner or family members at an inflated salary in order to divert their own income; Lifestyle inconsistent with declared income – this ground can be relevant if , for example, an income of £30,000 has been declared but the payer’s mortgage payments alone are believed to amount to £24,000 per year. This ground won't work if the payer is financing his lifestyle from gifts from his parents or on credit cards. [related_posts] Do I need legal advice to apply for a change to child maintenance? You don’t have to get legal advice from a divorce solicitor in order to apply for a child support agency variation but sometimes it helps to take advice on your options. It is important that you take legal advice if you haven’t reached a financial settlement with your ex-spouse or you have an ongoing spousal maintenance order. That is because there are potentially court based spousal maintenance options and other types of court order that may encourage the payer to start making reasonable child support payments. Court options can be used in combination with a variation application to the child support agency or as a stand-alone application. If you need legal assistance with a change to child maintenance please contact us today,

When separated parents are juggling full time jobs with child care it is common for parents to agree a shared care parenting regime for their children. Shared care may help with the daily battle of getting to work on time or getting one child to a ballet lesson and another to a football match on a Saturday but who pays child maintenance when you share the care of your children? That is a question you should ask before you agree childcare arrangements and the amount of child support. We are Manchester divorce solicitors If you are separating or divorcing and need legal help with child support or child custody then our expert divorce lawyers can help you. Contact us today. Child support and child care In my experience as a Manchester divorce solicitor some parents pay too much in child maintenance and others don’t pay enough. It is important to get the balance right. It can be hard to agree on the right level of child maintenance once a shared care arrangement is in place or once the first child maintenance payment has been made. That’s why it is important to get legal advice from a solicitor before plans are drawn up. What is ‘shared care’ of children? Shared care is as individual as families. It is a question of what works for a particular family. I have seen some families agree on: Sharing an au pair or nanny so that the child care support moves with the children to provide continuity; A week on, week off schedule so the children spend a week with each parent; A day on, day off schedule so the children never spend more than a day away from each parent, save for holidays. I am not advocating those shared care arrangements but for some families they work better than the more traditional 3 day / 4 day split one week and then swapping the days on the second week. What shared care arrangement works depends on distances between family homes, new relationships and step children and the practicalities of managing work and child care commitments combined with the daily commute and school run. Shared care doesn’t mean that the children have to spend exactly half their week with each parent. In some families one parent will look after the children during the week and the other parent at the weekend. You may question why one parent gets all the ‘quality weekend’ time with the children but some parents are only able to get weekend work or want stability for the children during the school week. Experience as a Manchester divorce solicitor has shown that any type of shared care arrangement can be good for children provided their parents are happy with the arrangements and commit to co-parenting. Who pays child maintenance when parenting of children is shared? If you carry out a poll of parents on the question who pays child maintenance when parenting of children is shared? the vast majority of parents assume that the parent who earns more than the other will pay child maintenance. That’s not right as under complicated child maintenance law rules if both parents equally share the care of their children neither parent will pay child maintenance to the other parent. It has long been thought that if one parent gets the child benefit money then their entitlement to the child benefit payment automatically means that they are the parent who is entitled to ask for child maintenance. One father recently challenged that idea and took his case to a child maintenance tribunal. The tribunal decided that: The day to day care provided by each parent has to be evaluated. The evaluation isn’t just counting nights that the children stay with each parent but looking at tasks and responsibilities; If there is equal responsibility for the day to day care of the children then no child maintenance is payable , even if one parent earns a lot more than the other parent; Child maintenance is only payable if one of the parents is classed under child maintenance rules as the ‘non-resident parent, or in other words, there isn’t an equal shared care arrangement. This means that the other parent is classed under child maintenance rules as the ’parent with care’; If there is no evidence to the contrary on shared care then if the person applying for child support receives the child benefit payments it is assumed that they are the ‘parent with care’. This assumption isn’t relevant if both parents equally share the care of the children. What difference does shared care make to child maintenance? If you share the care of your children then it can make the difference between receiving hundreds of pounds each month for your children in child support and receiving no child maintenance at all. That can mean the difference between being able to afford to work part time and having to work overtime to pay household bills. For parents who are paying child maintenance on top of the costs of looking after their child for half the week the child support payments can mean the difference between being able to afford a house near to a child’s school or only being able to buy a house that is too far away to be able to have the child to stay mid-week and get them to school the next day. That is why it is so important that both parents know where they stand on shared care and child maintenance before agreeing on a parenting regime and child maintenance. Sorting out family finances is similar to juggling shared child care with the daily commute and new relationships. There has to be joined up thinking into: What type of child care arrangement meet your child’s needs? Some children cope better than others with an equal shared care arrangement. How do the practicalities of commute and work commitments impact on sharing the child care? Will one parent be paying spousal maintenance to the other parent and, if so, how long for? Will one parent be receiving more than half of the equity in the family home to rehouse themselves as they earn less than the other parent? If you do share the care of the children and child support isn’t paid how will this impact on the finances of both parents?   With specialist legal advice from a Manchester divorce solicitor on your best divorce and financial options many parents can agree a financial settlement that meets both family’s needs and receive legal protection with a financial court order. [related_posts] What happens if we stop or start sharing the care of the children? If, for whatever reason, you stop or start sharing the care of your children then child maintenance could either stop or start. That is because in most situations you can apply to the child maintenance service for child support at any stage. If child care arrangements change then a parent may be able to ask the child maintenance service to either stop the requirement to pay child support or to vary the amount of child maintenance. That’s why, when looking at your housing options and finances on separation, it is as well to factor in possible changes in child support in future. Manchester & Cheshire based Evolve Family Law solicitors are approachable and friendly, providing pragmatic expert divorce, children and financial settlement solutions.

Help us to win the award for Best Family Law Firm in Manchester in the Talk of Manchester Awards 2018! Vote Now Anyone who knows me and the Evolve Family Law team knows that we don't usually go in for awards. We prefer to let our work and our clients speak for us. However, one of our very happy clients put Evolve Family Law forward to receive an award for Best Family Law Firm in The Talk of Manchester Awards 2018 and we have since been shortlisted! Our winning this award depends on the number of people voting for us so please do vote today. Helping clients make informed choices by focussing on guiding them through the confusing minefield of family and divorce law is what we do best and being recognised for this makes us extremely proud of our team's hard work and commitment. If you like what the Evolve team do and what Evolve Family Law stands for, please click on the link below to vote. All you have to do is enter your name and email and then scroll to Category 13. Voting closes at 5pm on 12 October www.thetalkofmanchester.co.uk/awards Thank you to everyone who has voted for us to far, we are very grateful for the nomination and for anyone who takes the time to help us achieve our vision “To be the most trusted and first choice advisors for everyone going through relationship changes”. [related_posts]

We are always reading in the press about celebrities getting 'quickie divorces’. Today’s news that a woman whose divorce was refused by the Supreme Court ‘ will come as a surprise to many who assume that in the 21st century if you want to get divorced you can go ahead and do so. Read the full news story. As divorce solicitors, obtaining divorces on a daily basis we know that getting divorced isn’t plain sailing. The grounds for divorce Why did the Supreme Court refuse 68 year old Tini Owen’s request for a Decree Nisi of divorce from her husband? The 3 Judges agreed that the marriage had broken down, with Mr and Mrs Owen living in separate houses and there being no prospect of a reconciliation between the couple. However under current divorce law a petitioner or divorce solicitors asking the Court for a divorce not only have to establish that the marriage has broken down but also that the failure of the marriage is down to one of five specified reasons: • Adultery; • Unreasonable behaviour; • Separation for 2 years with your husband or wife's agreement to the divorce; • Desertion; • Separation for 5 years – you then don’t need your husband or wife's consent to the divorce. Can you get divorced? The Supreme Court Judges have decided Mrs Owens can't get a divorce based on her current divorce petition. Why? Well although it was agreed that the Owen marriage had broken down the Court wasn’t satisfied that Mrs Owen had established that Mr Owen had behaved unreasonably. As Mr Owen won't agree to a divorce based on 2 years separation that means Mrs Owen will need to wait until 2020, when she will have been separated 5 years, to start fresh divorce proceedings against Mr Owen.Ultimately Mrs Owen will get her divorce but if divorce solicitors are asked then the answer at the moment to the question ‘’can you get divorced’’ is not necessarily and not yet. What do divorce solicitors and family Courts consider to be unreasonable behaviour? Mrs Owen didn’t get her divorce because the Supreme Court wasn’t satisfied that Mr Owen had behaved unreasonably. Usually when a husband or wife starts divorce proceedings on the basis of unreasonable behaviour their spouse doesn’t challenge the reasons stated in the divorce proceedings. That is because the spouse sees the divorce paperwork as a means to a common goal of a divorce and a financial settlement. In Mrs Owen’s case her husband objected to the divorce and said he hadn’t behaved unreasonably. It has long been established by divorce Courts that unreasonable behaviour isn’t falling out of love or drifting apart from a spouse. There has to be some behaviour on the part of the spouse that is so unreasonable a divorce is justified. Lots of people assume unreasonable behaviour has to be pretty extreme such as an assault but divorce solicitors know that unreasonable behaviour comes in many different forms such as: • Financially controlling your husband or wife; • Belittling or demeaning your spouse; • Refusing to communicate or socialise with your husband or wife; • Failing to support your spouse, this could be emotionally, financially or in bringing up the children. There are numerous other examples of unreasonable behaviour. It is important to get legal advice from divorce solicitors before you start divorce proceedings. Why? Well it is important to detail enough allegations of unreasonable behaviour to make sure that the Court is satisfied that a spouse has behaved unreasonably but, on the other hand, the divorce petition shouldn’t be too extreme. If the allegations are too strong it may make it a lot harder to reach a parenting agreement and a financial settlement with your husband or wife. [related_posts] Will the allegations in the divorce proceedings affect the childcare arrangements or financial settlement? This question is often asked of divorce solicitors. It is very understandable as people fear that if they accept the unreasonable behaviour allegations in a divorce petition and don’t contest the divorce that they will end up not seeing the children or the Court will take into account the unreasonable behaviour allegations when deciding how the assets and property are split up. That is why it is important to get advice from divorce solicitors before you start divorce proceedings or agree to a divorce. Divorce solicitors can agree that although you are not contesting the divorce petition as you both want a divorce that if the allegations in the divorce petition are raised in any future financial or children Court proceedings you can contest and challenge what is said about you. In other words agreeing to the divorce petition is a means to an end whilst preserving your legal rights. For help from expert divorce solicitors on any aspect of divorce proceedings or for information on financial claims on divorce, contact us.

My partner and I can't agree whether I'm entitled to spousal maintenance. What can I do? If you can't reach an agreement over the amount of spousal maintenance then you can make an application to Court. The Court doesn’t have a set formula to say how much, if any, spousal maintenance should be paid. The Court has a lot of discretion to make what orders it thinks appropriate. The Court can also order lump sum payments and property transfer orders. These are separate but linked to spousal maintenance orders. This means that the less capital that a husband or wife receives then the greater the probability that they may need spousal maintenance in order to meet their income needs. Reaching a financial settlement is a bit like putting a jigsaw together as it is important that the capital, pension and income settlements meet needs. If I am entitled to spousal maintenance how long will the spousal maintenance last for? The Court can order different types of spousal maintenance or no spousal maintenance. Joint lives maintenance is often called the ‘’meal ticket for life’’ spousal maintenance in the media. Why? It is because the spousal maintenance continues throughout the joint lives of the payer and the payee until further order of the Court or until the payee remarries. A husband or wife can apply back to the Court to change the amount of maintenance payable upwards or downwards if there is a change in circumstances. It is also possible for the payer to apply to the Court to stop the spousal maintenance payments if there is a change in circumstances. Term spousal maintenance continues for a set number of years. The level of spousal maintenance can be changed before the term expires (but not afterwards). The term or length of time that spousal maintenance is paid for can be extended by the Court although there must be a good reason to do so and the application must be made before the term maintenance order expires. Term spousal maintenance with a bar is exactly the same as a term spousal maintenance order save that the length of time that the maintenance is paid for cannot be extended. Clean break order is when no spousal maintenance is payable. If the Court makes a spousal maintenance clean break order then a husband and wife can’t make a maintenance application, even if there is a change in their personal financial circumstances at a later date. I am worried about if I am entitled to spousal maintenance. What should I do? The best thing to do is to get some early legal advice. Why? If you are entitled to spousal maintenance then an urgent Court application for what is known as ‘’maintence pending suit’’ may be necessary. Even if your situation isn’t urgent it pays to get legal advice so that you understand what steps need to be taken to ensure that you are either able to negotiate spousal maintenance; get a Court spousal maintenance order; or apply to change the amount or extend the time that spousal maintenance is payable for. In some situations that involves looking at your ex-spouses income and financial circumstances and in others looking at your outgoings, career prospects and family circumstances. [related_posts] If you have been reading the news about the end of the "meal ticket for life" divorce case of Mr and Mrs Mills and you are either getting divorced or are a divorcee you may be concerned about the question ‘’am I entitled to spousal maintenance?”. It wouldn't be unreasonable to assume from some of the press coverage of Mr and Mrs Mill’s financial Court proceedings that spousal maintenance is an old fashioned concept and that after their divorce spouses will, in future, have to stand on their own two feet and be financially independent of one another. A careful read of the Court decision in Mr and Mrs Mill’s case reveals that the question "am I entitled to spousal maintenance" is still a very valid question. How does the Mills decision affect the question ‘’am I entitled to spousal maintenance?’’ Why has Mr and Mills case hit the headlines? In the Mills case the dispute was over whether Mr Mills should pay his ex-wife increased monthly spousal maintenance payments. When the couple split up the Court ordered Mr Mills to pay spousal maintenance to Mrs Mills. In addition the Court gave Mrs Mills enough capital to buy a house. Fast forward nearly a decade and Mr Mills wanted to reduce the spousal maintenance payments and Mrs Mills wanted the spousal maintenance payments to increase as she’d made unwise financial investments and was in debt and renting a house. She therefore argued that as she had increased outgoings she needed more spousal maintenance to meet her basic needs. The Supreme Court has ruled that the original level of spousal maintenance payments must continue but that they won't be increased. So, those who say that the Mills case stops the ‘’meal ticket for life’’ are wrong. However the Mills case and other recent Court decisions do show an increased concern on the part of the divorce Court to really analyse if spousal maintenance should be paid and if so the amount of the spousal maintenance and how long it should be paid for. This is with a view to both husband and wife in appropriate family situations, being able to achieve financial independence of one another. One of the strong reasons behind the Court decision not to increase Mrs Mill’s spousal maintenance payments was the fact that at the time of the first financial proceedings Mrs Mills had been given enough cash to buy a house and so if she’d used the money wisely she wouldn't have needed more spousal maintenance to pay her debts and rent. The Court concluded her ex-spouse shouldn’t be penalised by her poor financial decisions a decade after the marriage had broken down. For help with your entitlement to spousal maintenance or to review an existing spousal maintenance order please contact us.  

We were delighted to support a business breakfast recently with the special guest speaker Economist, Jim O’Neill, Lord O’Neill of Gatley.  The event was attended by over 100 guests from the business community, and raised nearly £10,000 for MedEquip4Kids. Once breakfast and coffee were served, MedEquip4Kids chairman Brian White welcomed Lord O’Neill and gave a brief introduction to his many impressive achievements. After graduating from Sheffield University, Lord O’Neill studied for a PhD at Surrey and went on to become a renowned economist, working for various banks including 15 years at Goldman Sachs Division of Asset Management. He is especially well known for developing the acronym BRIC (Brazil, Russia, India and China), a group of countries considered to be at a similar stage of newly advanced economic development. In 2011 he was named by Bloomberg Markets magazine as one of the 50 most influential financial professionals worldwide. When Lord O’Neill left Goldman Sachs he had a desire to do something different, though he wasn’t sure at first what that would be. Then he was asked by David Cameron to lead a review into the problem of antimicrobial resistance. His wife, who is a scientist, commented that it was the first time she’d be able to understand and be interested in what he was doing! Lord O’Neill has subsequently co-written a book called Superbugs: An Arms Race Against Bacteria. After the talk the floor was opened up for the audience to ask questions. Perhaps unsurprisingly in the circumstances, the first topic to be raised was Brexit.  Lord O’Neill’s view as a remainer was that there were likely to be negative consequences of Britain leaving the EU, but it perhaps wasn’t the most important issue facing the UK economy at the current time. In fact it was possible that increased productivity could eventually make up for any negative impact of Brexit. But in order to achieve that productivity, it was crucial to tackle geographical and intergenerational inequality – factors he believed were responsible for the referendum result, especially in places like Sunderland where people had felt for decades that they were being left behind compared to other parts of the UK. This led on to the subject of the Northern Powerhouse, an initiative which Lord O’Neill has championed and remains heavily involved in. In his opinion the six key factors in regenerating the northern economies are: devolution (in particular healthcare – he mentioned that in areas of North Manchester the life expectancy for men is just 59 years old), transport, education, skills, businesses moving out of London to prevent young people in the north having to relocate for jobs, and backing from private sector and council leaders. Finally Lord O’Neill was asked about the best emerging markets for UK exports, and he emphasised the importance of China. Although its growth has slowed recently, it still creates an equivalent of the South African economy every month. One important area is Chinese consumers: Apple now sells more iPhones to Chinese customers than it does to US ones. Other key emerging markets he noted were Vietnam and Laos. At the end of the breakfast Lord O’Neill, who is an enthusiastic supporter of Manchester United, drew out the winning envelope from the prize draw. The lucky winner was our very own Becky who went away with a Paul Pogba shirt! [related_posts]

Is it a gift or a loan? Helping your children on the property ladder. In an age where a lot of young people and divorcees recovering from the financial split from their spouse can’t get on the property ladder without help from the ‘’bank of mum and dad’’ a reported case in the Daily Mail highlights the importance of recording agreement over property. The reasons behind why Mr and Mrs Joy gave their daughter £90,000 are complex but in essence the Joy family dispute was simple: was the £90,000 payment a loan, as claimed by Mr and Mrs Joy, or a gift, as asserted by their daughter, Lucy. https://www.dailymail.co.uk/news/article-5669857/Bitter-rift-bank-mum-dad-Couple-lose-90-000-loaning-daughter.html After a Court battle a judge has recently ruled that the money was a gift and is not repayable by the couple’s daughter, Lucy. This is despite Mr and Mrs Joy reportedly re-mortgaging their family home to raise the £90,000 for their daughter on the basis of an alleged verbal agreement that Lucy would then transfer an inherited property into Mrs Joy’s name. The key factor in the Court decision was that there was no written agreement or contract between parents and child. As a family solicitor I am often told by clients that they don’t need a written agreement or document between their family members. The Joy case is a salutary reminder of the importance of writing things down. That is not just because family can fall out but also to protect family members from: The donor’s estate being liable for extra inheritance tax as the HMRC might not view a payment to a family member as a ‘’gift’’ without formal evidence; The person receiving the money facing a financial claim on divorce and therefore needing to establish that money received from family was a gift to them as an individual or a repayable loan; The person receiving the money facing bankruptcy or a Court judgement – without a written document a third party or a Court may not accept that the money was a loan and not a gift. [related_posts] There are many different ways in which family property agreements can be recorded, such as: Cohabitation agreement between cohabiting couples; Declarations of trust between joint owners; Loan – not secured on the property ; Mortgage – secured against the property ; Prenup agreements between an engaged couple; Postnup agreements – suitable for a married couple who acquire property after marriage, for example, inherited from a parent; Record of gift of property or deposit to purchase a property. Whatever the type of document and however the paperwork is drawn up, the important thing is that there is a written agreement. By spending the time recording the property agreement a lot of time and money can be avoided when it comes time for the loan to be repaid, the property sold or the estate sorted out. The English philosopher, John Locke, said ‘’where there is no property there is no injustice’’. I say ‘’ where there is a written agreement on property there’s normally no injustice’’. For help with family agreements and estate planning please contact us