Tycoon’s £48m award to wife ‘a warning’ to business owners

Published: 3rd August 2006

Mace & Jones made its plea as it was revealed that insurance magnate John Charman has been ordered to pay his former wife Beverley a total of £48m. The pay out is believed to be the biggest divorce award in legal history.

Family law specialist Emma Collins said the Charman case set an important precedent for business owners.

"The blunt truth is that a spouse may have never even set foot in their partner's business, but if a marriage breaks down they could still claim against the firm's assets or even force its sale," she said. "For this reason it really is imperative that business owners pay close attention to the outcome of the Charman case and ensure they take advice to protect their business."

Ms Collins said the bad news for business owners is that recent legal cases have shown that it is increasingly difficult to ring-fence or conceal assets.

"The divorce courts are a lottery, and when businesses are involved the stakes are higher and the odds even harder to call,' she said. "The final settlement depends on a series of factors, including the length of the marriage, the contribution to the business, the presence of children, and future case law.

"However the starting point is that there must be a fair division of the assets, including the business, whether your spouse has ever worked in the business or not. A fair division may mean an equal split of the assets, but that is not set in stone: it could even mean more than half. In some cases, there aren't sufficient assets, apart from the business, to satisfy a spouse's claims and it is in these cases that the business is particularly vulnerable."

Ms Collins said businesses should think about the possibility of entering into a pre-nuptial agreement before marriage, or a post-nuptial settlement if they are married.

Business owners wanting to know more about protecting themselves from divorce can email emma.collins@maceandjones.co.uk or visit www.maceandjones.co.uk