One complicated issue that can arise in ancillary relief proceedings upon divorce is where the marriage's only major asset is a business run by one of the parties. A business is a good example of an asset that often cannot be divided in two by the court, but this can result in injustice where there are no other assets to distribute. In the recent case of H v H [2008] EWHC 935 (Fam) the High Court considered this conundrum, and emphasised that it is useful in this case to look at periodical payments, tied if appropriate to the wealth generated by the business. This can provide a party with a de facto income stream from the business with less interruption to the business than a division of its assets.

Written by Rebecca Fitton-Brown, Barrister at New Walk Chambers, specialising in Family Law.