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Britain is a nation of animal lovers. Pets are considered essential members of the family, much like our human relatives. For many years, we’ve let animals into our homes, but recently the pet population has exploded.

According to the Pet Food Manufacturers’ Association, 3.2 million households in the United Kingdom have acquired a pet since the start of the Covid19, with two-thirds of new owners being between 16 and 34 years old. In 2021, there were an estimated 34 million pets in homes across the United Kingdom. As a result of this, it’s critical to consider what impact divorce will have on our beloved pets.

What will happen to your pet during the divorce?

The first consideration of the English court in deciding marital property distribution after divorce is the best interests of any minor child from the family who has not yet reached the age of 18. The English court does not currently recognize the special role that pets have in family relationships; there is no mention of pets in the issues to which the English court should pay attention when determining how to apply its power, and pets are regarded as merely items or personal property.

However, recent changes in Spanish law have elevated pets to the status of “sentient, living beings” on the Iberian peninsula. This implies that the Spanish family court must take the animal’s well-being into account while determining custody and visitation rights. As a result, the Spanish court now has authority over shared custody and visitor arrangements with pets. France, Portugal, and several other European nations have implemented similar laws.

In the English court, however, it is generally anticipated that separating couples will reach an agreement regarding pet custody and associated expenditures. It’s believed that if the English court must rule on pet custody, it will weigh who paid for the animal (in addition to other costs such as food and vet bills), whose name is on the microchip, and who is registered as the pet’s owner at the vets.

In addition, the court may consider the most suitable home for the pet moving forward, especially if there are significant distinctions in each spouse’s living situations and financial situations. This is in stark contrast to the aforementioned European countries, where pets have a higher priority during divorce over their financial well-being.

What are some of the ways that people handle their disagreements about pets during the divorce?

In recent years, the creation of a “pet nup” agreement has increased. This is a written agreement that sets out the care and living conditions for a pet in the case of a future divorce, which both sides have agreed on beforehand.

It can help prevent future disagreements in respect of the care of the pet and make pet custody after divorce clear. The courts are placing more and more weight on these kinds of agreements, as long as they lay out the position of both partners and are made by two consenting adults. Alternatively, a clause concerning a pet can be included in a standard prenuptial or cohabitation agreement.

It can assist prevent future conflict regarding the care of the pet and make clear who is responsible for caring for it after divorce. The courts are placing more weight on these sorts of agreements, as long as they are properly worded and made by two consenting adults. As an alternative, a clause concerning a pet may be included in either a standard prenuptial or cohabitation agreement.

What should you do if you can’t make a decision?

Communication is critical during divorce proceedings, but it’s especially essential when it comes to your pet’s living situation. Divorce, understandably, might be a very stressful time; however, when making decisions about your pet’s housing arrangements, communication is crucial. It’s crucial to sit down and talk about your pet’s greatest interests with your partner before seeking legal help.

We’ve seen this in the media, with TV personality Ant McPartlin and ex-wife Lisa Armstrong agreeing to share custody of their dog after their divorce. It’s just another example of how if you work together, you can come to an agreement that meets your and your pet’s needs while also fulfilling your loved one’s wishes.

There are ways to make sure your divorce does not impact your business.

The situation is complicated by the fact that one in two marriages these days ends in divorce, with distributions of property becoming a stressful and challenging processes. Things become even more difficult if a business is involved.

Whether you’re a majority owner, a board member, or the company’s CEO, there are things you can do to avoid your earnings or business from being harmed by your divorce.

What are the consequences?

Financial factors.

Divorces are not always simple. Aside from child custody, the financial ramifications are the most frightening. Even if your divorce is uncontested, you may still be claimed all of your possessions.

There’s one huge cause for this: marital property. It includes money in a savings account, stocks and bonds, and other assets. It is defined as “all income and assets acquired by either spouse during the marriage.”

Find out more about dividing money in a divorce.

Equitable distribution or community property.

How much is your business worth? The following nine states are community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. If you live in one of these states, the split is even 50/50.

The remaining 41 states are classified as equal distribution areas. In these areas, the final conclusion of marital property is made by a court. This sort of dispute might take a long time to resolve, especially if neither side is willing to settle on an equitable division.

On a day-to-day basis.

Divorce proceedings are a strain on all parties’ emotions. If you’re running a firm, your attention may be diverted during this time, putting your business at risk. You could be distracted by conversations with lawyers, the gathering and submission of documents, or the burden that the issue has put on you.

If you’re a significant stakeholder, things get more difficult. If your ex receives a large stake in the company as part of the settlement, they may become an unwanted partner, causing the company to fall apart. Furthermore, your interest has been diluted, possibly resulting in a change in your status.

Assume that your spouse was already or is presently active in the company, especially in a senior position. In that scenario, the matter becomes even more complex, since they will continue to have a say in day-to-day operations. They may have gotten a share of your stock, at the same time, their position is growing.

The following are two possibilities. First, they sell their shares and leave the business, which immediately relieves stress and can affect the stock price. Second, there are those who can cause office stress that will never go away.

What can you do to prevent this?

What is the best approach to prevent this from happening in the future? Before you get married, safeguard your business and make wise decisions as you go. In addition, consider the following things:

Create a prenup or postnup document.

No spouse wants to acknowledge that the marriage might fail before the wedding. However, if the problem involves significant assets, such as an established firm, facing reality is critical.

A prenuptial agreement or a postnuptial agreement should be signed before or shortly after the wedding to precisely state what happens to the company if things go wrong. The first question to consider is whether the current firm should be included in the marital property, even if one spouse was actively involved in managing it throughout the marriage.

The total value of the company at the time of divorce, as well as any assets definition, is among the other things to consider.

Keep your finances separate.

Don’t use your house as collateral to finance your business. Keep your assets separate to avoid confusion about what belongs to whom later on.

Pay yourself a fair wage.

To maintain a liquid state, many business owners pay themselves a lower wage. The disadvantage, on the other hand, is that if a divorce occurs, there will be more left over to share. If you’re receiving a higher salary, you’ll have less money left over if it becomes necessary to pay a large settlement later.

Set the company up as a trust.

You don’t own the company when it’s placed in a trust. That way, nothing in your name is used in the settlement. However, there are rules in place to prevent fraudulent asset transfers. If you know your marriage is likely to dissolve and you transfer the firm into a trust, your state may declare the transfer invalid.

Get a policy for insurance.

If the divorce settlement prices more than you have on hand, you don’t want to be in a position where you must sell all or part of your business to settle it. Having a whole-life insurance policy that you can cash out might prevent this from happening.

What you have to do if didn’t take any steps in advance?

If you believed that your relationship would last forever and didn’t take any measures to protect yourself when you were married, it’s not too late. There are things you may do.

It’s time to sell your company.

This may be the ultimate answer, as dramatic as it appears. If your former spouse is still involved in the firm due to inventory distribution and this working relationship is untenable, your only choice is to withdraw. Keep in mind that court decisions will allocate the proceeds from the sale of your company equally.

Give up other assets.

If you give your ex-spouse a higher, or the entire portion of, one or more of your other assets, you might be able to keep 100% of your business. Perhaps the family home is more essential to them than it is to you, and it might be utilized as a settlement tool for your business.

Sell a portion of the business.

You may find yourself in a situation where you must obtain immediate money to finalize your divorce agreement. Consider offering a portion of your stake in the firm to existing partners or staff rather than selling the whole thing. You may also try to negotiate a buy-back agreement for a future date.

You may also make payments on a schedule.

You can negotiate an agreement with your ex in which the settlement is paid out over time, often as a garnishee of wages. This arrangement fulfills both your obligations and your company’s interests.

For more on limited companies and divorce see Crisp & Co Solicitors

Divorce is a reality

Unfortunately, not everyone gets the happy ending they deserve. Businesses are dragged into divorce settlements when a marriage comes to an end.

You must plan ahead of time to protect yourself and your organization from becoming a victim of your marriage’s dissolution. Get a pre or postnup. Separate your personal and professional money, and pay yourself a fair wage. Consider forming a company in a trust and purchasing whole life insurance.

However, there are things you can do if it’s too late and you didn’t take precautions. You might sell a portion or the company, sign a contract to offer other assets in exchange for the firm, or make settlement payments over time.