The continuing recession is hitting all sectors of society, resulting in some fairly unusual situations. Not least of these is couples who set up business together, then divorce but continue working together in these troubled economic times.

It has led to the advent of what some are calling the “good divorce” – where couples cannot agree on things personally but when it comes to business see the sense in staying together rather than risk striking out alone or starting again.

“The recession has had a big impact and we are increasingly seeing this type of arrangement,” said Andrew Robotham, Leicestershire-based family law expert with Woolley & Co.

“Couples working together want to try and keep the business running as best as they can through hard times. Dividing that business may affect its performance so they agree to keep working together despite the fact they are going through a divorce. Their personal relationship breaks-up but it makes good business sense for their business one to remain intact. In the most extreme cases, they are actually forced to continue working together to keep the enterprise afloat.

“If an entrepreneurial couple are considering a divorce, they both need to take expert legal advice to help decide the best way forward.”

Historically, courts would seek to protect a business venture from being heavily impacted in a divorce settlement, to prevent the threat of it having to be sold off to meet the financial requirements of one or both of the parties. After all, what is the point in selling off the business which provides for all the family, both now and in the future?

In other circumstances, if a couple does not want to stay together, all matrimonial assets, including the business, need to be valued to agree a settlement. This value can be depressed during a recession, forcing a couple to stay tied together in business longer than they might like. For example, a builder could argue that the business income has plummeted as a result of the stagnation of the housing market. The party wishing to retain the business could legitimately claim that the business value is significantly lower than the spouse might expect, based on current market conditions. However, is this a fair assessment? A lawyer could suggest that the other partner postpone a final claim – or push simply for maintenance in the short term – until the market picks up again and the true value of the business can be reflected in a final settlement. Instances like this have inevitably become more prevalent over the last 18 months.

Those going through relationship breakdown need the advice of specialist lawyers and forensic accountants. Contact Woolley & Co or visit www.family-lawfirm.co.uk for more details.

Katherine Melkerts should know. She set up her own practice, Melkerts Solicitors, specialising in wills and probate and private client issues in May this year. She has been working exclusively in this area of law for eight years, with some 16 years in total spent practising law.

An ordinary Power of Attorney gives a named person, normally a relative, the power to look after someone else’s financial affairs. However a Lasting Power of Attorney extends this power to remain effective even if the person granting the power later becomes mentally incapacitated. Katherine believes that it is coming more into focus for couples who divorce and want to safeguard their affairs for the future.

“Whilst wills and probate was previously an area that had interested me, I did not choose to specialise until 2001,” said Katherine.

“It is all encompassing and no two cases are the same. It is a definite process that I follow through from start to finish. I get to know the family circumstances and have many repeat clients as a result.

“I deal with numerous Lasting Powers of Attorney both for property and affairs and health and welfare matters with people planning for the future and making sure their affairs can be managed if something happens during their lifetime. Increasingly, people are thinking of things like this.

“When someone divorces, it can be a time to reassess everything and with the prevalence of second and third marriages, people want to make sure their own children are properly provided for in the future. It is therefore an important to time to review or to consider making a will dealing with these matters.”

To find out more about the services offered by Melkerts Solicitors, go to www.melkerts-solicitors.co.uk or email melkerts-solicitors@btconnect.com Alternatively, you can reach Katherine on 01788 860088.

Red tape cut for forced marriage orders

Vulnerable young adults and children in danger of being forced into marriage can now be protected by local councils without the need to go to court.

Forced Marriage Protection Orders can include orders to compel a person to hand over passports to prevent someone being taken abroad, orders to stop intimidation and violence, or orders to compel someone to reveal the whereabouts of another.

Failure to comply with an order could lead to imprisonment.

Justice minister Bridget Prentice said: ‘We are cutting legal red tape so that local authorities are empowered to give vulnerable people the protection they need as fast as possible.

‘Forced Marriage Protection Orders are helping victims to tackle intimidation and threats of violence and abduction, sometimes from family members who are difficult to stand up against.”

Read more about the protection available against forced marriages on the Woolley & Co website.

US survey reveals recession has hit divorce numbers

A survey of family lawyers in the United States appears to show an opposite trend to that in the UK with the number of people filing for divorce dropping since the start of the recession.

More than half of the respondents to the latest survey of the American Academy of Matrimonial Lawyers (AAML) are citing a drop in filings during the current recession. In all, 57% of the attorneys have noted fewer divorce filings since the last quarter of 2008.

"The current economic climate is proving to be far more unforgiving than estranged couples seeking a divorce," said Gary Nickelson, president of the AAML.

"Forced to weigh damaged marriages against tight budgets and uncertain financial outlooks, many spouses seem more willing to try and wait out the recessionary storm."

The results though seem to fly in the face of what many family lawyers are experiencing in the UK.

Woolley & Co has seen business rise year-on-year by around 30 per cent and has taken on five new lawyers in the last year.

“The American survey is surprising. What we are finding is that the pressures of the recession are the final straw for some couples who might have been struggling. We have certainly seem a considerable increase in enquiries from couples wanting to divorce, rather than a decrease,” said Andrew Woolley, managing partner of Woolley & Co.

Recession leads to divorce settlement renegotiations

A third of solicitors have been asked to renegotiate divorce settlements because of the recession, according to a new survey.

The falls in property and investment values have led many people divorcing to look again at what they are really worth.

David Elms, chief executive of Unbiased.co.uk, said: "The credit crunch has affected everyone in different ways, but those going through a divorce have been put in a difficult position due to the value of their combined assets decreasing over the period of the financial settlement being agreed.”

A poll of solicitors by Unbiased found 84 per cent thought the first area to look at when aiming to re-evaluate your wealth is property.

“Certainly property values have to be taken into account but couples should not forget their pension funds and other investments too,” said Andrew Woolley, Managing Partner of Woolley & Co, Solicitors.

Woolley & Co has welcomed another new lawyer, Sharon Brassington, to its swelling ranks, bringing the total number of family law experts now to 18.

Based in Bulkington, in north Warwickshire, Sharon, who comes from a practice in Hinckley, already has clients across Coventry and Warwickshire.

Sharon attended Nicholas Chamberlaine School, in Bedworth, before heading to North London University and then the York College of Law. She had decided at the age of 14 that she wanted to work with the law.

“Family law is something I really enjoy. It is about meeting all kinds of people who are in difficult circumstances,” said Sharon, married with two children, who is a collaborative lawyer, a member of the Family Law Panel and a member of Resolution.

Sharon can be contacted on 0845 680 2136 or at Sharon.brassington@family-lawfirm.co.uk