starting point of a division of assets in England and Wales is 50:50. This would include your stake in the family business. You and other stake holders are unlikely to want your ex-spouse to retain an interest in the business. Thus, without proper protections such as a pre-nuptial agreement, matters could become very messy. Quite often, clients will come to me and declare steps that they have already taken to exit the business or to bring someone into the fold. Unfortunately, on most of these occasions, their actions have given rise to big tax bills which MY LEGAL LIFE 33 Can you share anything about your past experience in advising families on business and succession matters? Ignorance is not bliss and it is never the right time to have those difficult conversations. The family business cannot be considered in isolation to other family wealth and succession plans. Successful succession plans are always carefully thought through, considered and reviewed regularly. For lawyers less experienced in family law or estate planning, what would your primary advice be for succession planning concerning family businesses? Advising family businesses on their succession needs is a very niche area of law and my advice would always be to get advice from someone who really understands the area well. It is not necessary for one person to do it all; I often work with a number of specialist advisors to ensure that the family business receives holistic advice. The key is to recognise and appreciate the need for effective planning. Quite often, business owners will not know that they need to think about succession planning, so they will not take active steps to deal with it. Any advisor who works with a family business should be incorporating succession planning into the advice and the work they do. It may be something as simple as signposting them to the right people, or it could mean entrenching themselves with other advisors to develop a suitable solution for the business. Each family and each business are unique and no one structure or strategy is going to work for everyone. cannot then be reversed, or they have missed great tax planning opportunities which mean a large tax bill is to be expected in due course. There can also be a difference of opinion between generations. The elder generations often find it difficult to give up the day-to-day management of a business they gave so much to. Alternatively (or in addition), they may not take notice of the entrepreneurship of the next generation. How can these best be planned for and overcome? To put it simply, early preparation and having a suite of good governing documents are key. These are the foundation to fostering a culture that is acceptable to all. It is always important to review the documents regularly and ensure that they remain fit for purpose. Generational cooperation is also important. The patriarchs may have set up the business, but in order for it to succeed beyond them, there needs to be an acceptance of the next generation being allowed to contribute to the growth, expansion and direction of the business. As matters currently stand, family businesses rarely make it past the 2nd or 3rd generation. Get advice – the benefit of receiving sound advice from specialist advisors cannot be stressed enough. You will no doubt be great at what you do, but your advisors will ensure that you achieve your goals efficiently and without undue disruption to the business. As matters currently stand, family businesses rarely make it past the 2nd or 3rd generation.
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