Business finances and solvency can be complicated topics; you may even find yourself faced with an unusual set of circumstances.
How do you handle money and property when a relationship ends? Whether it’s the ending of a marriage, or a common law or de facto relationship, dividing assets is an inevitable reality.
While the law provides that relationship property is divided equally, there are situations in which this is not the case. In these instances, legal advice and the help of a qualified forensic accountant may be necessary.
Reaching a valid divorce settlement or relationship property agreement requires reviewing financial statements and primary records to determine whether:
- The property being divided was acquired during the relationship;
- The funds for the purchase were or were not separate;
- Relationship funds were used for the maintenance of property; and
- Relationship funds have been disposed of to a trust or qualifying company
In our experience, forensic accountants are often asked to assess the value of a claim for lump sum payment for economic disparity (S.15 Property (Relationships) Act 1976.
This is to compensate where, when the relationship ends, the income and standard of living of one party is likely to be significantly higher than the other party as a result of the division of duties within the relationship while the two were living together.
For example, a wife has foregone her career to raise children, or to enable her husband’s career to develop, and as a result her income and lifestyle post separation is considerably lower than her husband.
Dividing up relationship property in the event of separation can be a difficult process; in some cases, business and valuations may be necessary to facilitate settlement.
With this in mind, let Gerry Rea Partners ease the burden with our expertise in these areas. Phone us at 0800 343 343 and we’ll determine how we can best be of service.