Family - Denney King

Pre-nups: 4 Good Reasons Why You Need One

11 November 2023

What is a Pre-nup?

A prenup (also known as a prenuptial agreement or premarital agreement) is a legal agreement between two people who are planning to get married, which sets out how they have both agreed to divide their finances in the event of a divorce or separation. The purpose of the agreement is to protect certain assets for example non-matrimonial property such as gifts, inheritances, business interests and assets owned by either party before the marriage.

As the document is an agreement between you and your partner, you will need to have an open and honest discussion with your partner about what you both want to achieve from the agreement and which assets are to be protected.

We know it can be a difficult conversation to have, and no one wants to think about the prospect of divorce whilst planning a wedding, but by taking this step you are providing clarity and certainty if the marriage breaks down.

Why do I need a Pre-nup?

they often avoid lengthy legal battles as an agreement has already been reached which will reduce acrimony, costs and stress in the long term.
they provide clarity and certainty on what will happen in the event of a divorce as you have already agreed how your assets are going to be divided.
they aim to protect assets that you are going to inherit in the future such as business assets and property.
in the rural community, farms are often passed down through generations so a prenup can assist in ensuring that the farm remains in the family in the event of divorce.

How does a Pre-nup protect me?

Under the law in England and Wales, whilst not legally binding, prenuptial agreements are very persuasive and can often change the initial starting point for the division of assets. They are given significant weight in financial proceedings as long as the agreement is considered to be fair and reasonable and satisfies the legal requirements.

A prenup also assists the Court by demonstrating what both of your intentions were at the time of marriage and there will be a presumption that you both intended to be held to it’s terms.

What is fair and reasonable?

The prenup must not prejudice the reasonable requirements of any children (where appropriate).
The agreement must meet both of your needs. If the agreement would leave either one of you with less than you need, whilst the other is comfortably provided for, this is likely to be considered unfair.
There is nothing inherently unfair about protecting or ‘ringfencing’ non matrimonial property, e.g. inheritance.
The longer a marriage lasts, the greater the chance that a Court may not find it is fair to hold you both to the terms, because of changes in circumstances. Therefore, a prenup should be reviewed every 5 years or when there is a significant change of circumstances, such as the birth of a child.

We will advise you on fairness at the time of preparing the first draft of the agreement but generally the above situations are factors the court will consider when assessing reasonableness.

Do I have to disclose my assets?

Yes – the requirement for full and frank financial disclosure is an essential part of creating a legally valid prenuptial agreement. It ensures that you have both made decisions and entered into the agreement with transparency and fairness between you both and helps to prevent challenges to the agreement in Court.

What is the process?

We will have an initial chat with you to discuss your circumstances and find out more about you and what it is you and your partner are seeking to achieve.
We will ask you to complete a schedule of income, assets and liabilities identifying property, savings, business interests and pensions.
We will use the information provided to prepare a first draft of the agreement and we will discuss this with you.
Once you are happy with the draft, we will send a copy to your partner. We strongly recommend that they obtain their own independent legal advice.
Their solicitor can take instructions from your partner and liaise with us directly with regards to any amendments before finalising.
Once agreed, the document will be signed before an independent third party witness at least 28 days before the wedding.

For more information and on prenuptial agreements and obtain a fixed fee quote, please get in touch with Holly or Mercedes.

Divorce: Our Proactive 360 Degree Approach

8 November 2023

Collaborating with Other Professionals to Protect Your Interests

Considering divorce when you have high net wealth and business interests can seem overwhelming.

How can we help with your divorce?

At Denney King, we are experienced in dealing with financial proceedings involving business assets and inherited wealth. We understand the unique challenges of dealing with complex and high value assets in divorce proceedings and have the expertise to help you navigate this process. We also understand that this can be a stressful process during which you need clear, practical, commercially focused and jargon free advice.

What makes us different?

One of the things that sets us apart is our commitment to collaborating with other trusted professionals to ensure that there is a 360 degree approach to protecting your financial interests. We understand that your divorce may involve complex financial and legal issues, as well as emotional ones, and we are dedicated to working closely with your existing trusted advisors such as accountants and financial advisors.

By collaborating with other professionals, we can provide a comprehensive and holistic approach to advising you on your divorce. This means that we will take into account all of the factors that may impact upon your settlement, including any tax implications, financial projections and any potential risks or liabilities which may affect any long term tax or wealth protection planning.

We pride ourselves on working together collaboratively and adopting a proactive solutions focused approach to your case. We are human lawyers putting people at the heart of everything we do.

What’s next?

If you are facing a divorce and wish to protect your position, don’t hesitate to contact our experienced lawyers at Denney King. Call Mercedes on 07935 833633 for an initial conversation or email her at mercedes@denneyking.co.uk to request a call back.

Business Assets on Divorce

7 November 2023

Divorce is a challenging and emotional process, but it can be even more complicated when business assets are involved. Determining the value of the business and how itwill be dealt with and, if necessary, divided between the spouses can be a complex and time-consuming process.

At Denney King, our legal advisers have extensive experience handling complex business ownership issues in divorce. We can help shareholders, partners and sole traders to navigate the legal process and achieve a desirable and workable outcome. Whether you are seeking to retain ownership of your business or negotiate a fair settlement, we can provide the guidance and support you need.

Here are some considerations to keep in mind when navigating the complexities of business ownership in divorce:

Valuing the business

The value and liquidity of a business is an important factor in determining how it will be treated in a divorce. There are several methods that can be used to determine the value of a business including a net asset basis and a capital future maintainable earnings basis.
We work closely with expert valuers and your accountant and other trusted advisors to ensure that your business interests are accurately valued in the financial proceedings.
At Denney King, we take the time to understand your priorities for your business and to work with you to achieve a financial settlement which protects the viability of your business. We will also help you to establish whether there are any tax implications and/or issues of liquidity which need to be factored into any negotiation or settlement.

How the business will be treated

The value of the business would be taken in to account, it does not necessarily mean that the other party will receive a direct interest in the business. The Court is very reluctant to order a sale of a successful business and will usually try to offset the value of the business against other non-business assets. If this is not possible, the Court could look at sharing the income generated from the business as an alternative. If there is a tax efficient way of raising money against the business or extracting cash from it, then a lump sum order may be made.

Third party interests

A shareholding in a private limited company is treated as a matrimonial asset and the Court can make a property transfer order to transfer shares. However, this may have implications on other shareholders and therefore careful consideration need to be given to third party interest.

Other complex considerations arise if a non-shareholding spouse is employed by the business. It is important to understand that they may have empl

oyment rights which arise out of the fact that they remain an employee, regardless of the marriage breakdown. Expert advice is crucial.

Ways in which you can protect your business assets

A prenuptial or postnuptial agreement can be prepared to identify and ringfence business assets.
Keep the company separate from any household finances to avoid intermingling of business and non-business assets.
Negotiate an offset against non-business assets to ensure you retain control of your business. This may attract a discount as business assets are usually perceived by the Court to be risk laden in contrast to ‘copper bottomed’ assets such as cash or property.

If you are facing a divorce and have concerns about how the ownership of your business or other assets would be treated, do not hesitate to contact our experienced family lawyers at Denney King. We can help you understand your options and work towards a fair resolution. We are happy to offer an initial free, no obligation call, to discuss your specific circumstances. Please contact Holly or Mercedes today at holly@denneyking.co.uk or mercedes@denneyking.co.uk to find out how we can help you.

5 ways to protect generational and inherited farming assets on divorce

7 November 2023

Denney King specialises in complex divorces, including those in which there are inherited farming assets such as a family farm. Mercedes King-Jones and the family team understand the unique challenges that farmers face when going through a divorce. Inherited assets carry sentimental and financial significance, and we are here to advise our clients on how to protect them during divorce proceedings.

The family farm and farmhouse are often inherited assets which are not just a home, but also a way of life and an integral part of a farmer’s livelihood. The team at Denney King are experienced in advising on the complexities surrounding these assets. We are mindful that the family home is central to the farming business and we work closely with our clients, their accountants and land agents to explores strategies and considerations to safeguard inherited assets and to protect the farm during and after the divorce.

Inherited assets are typically property or money received from a family member or loved one. These assets can take various forms, such as property, land, investments, cash, or even a family business. However, the key distinction is that they were received by one of the parties as a gift, rather than acquired by both of them during the marriage.

We consider the history of the farm and any previous decisions made for tax planning purposes. We are also aware that sometimes the decision makers are not always a party to the divorce proceedings, but may be a separate influential third party.

In many circumstances, inherited assets are considered separate property and these assets are often treated differently from jointly owned or marital assets.

5 ways in which you can protect inherited farming assets include:

Maintaining separate ownership – One of the most effective ways to protect inherited assets is to ensure they remain separate. This may involve holding land in your sole name and keeping any money received in a separate bank account. Mixing inheritance with marital assets can make it more challenging to claim that they should be “ringfenced”.
Prenuptial Agreement or Postnuptial Agreement – You may wish to consider entering into a prenuptial or postnuptial agreement with your spouse to explicitly state that inherited assets are separate property.
Documentation – Maintaining detailed records and documentation regarding the inheritance can be crucial in proving the assets’ separate status in case of a divorce. Examples of these documents can include wills, probate records, bank statements, and any other evidence that clearly demonstrates the assets were inherited.
Avoid using inherited assets for marital expenses – Using inherited assets for the benefit of the marriage or family, such as purchasing the marital home or contributing to joint accounts, can blur the line between separate and marital property.
Consult with a Lawyer – Engage the services of an experienced family lawyer who can provide legal guidance and help you navigate the complexities of divorce, especially when inherited assets are involved.

In addition to our specialist divorce team, we also work closely with our private client and rural property teams to provide a well-rounded approach for our clients. This close collaboration allows us to address all the complex issues that arise during a farming divorce, including tax implications, inheritance, succession planning and protection of the family farm for future generations.

At Denney King, we are committed to providing our clients with the support and expertise they need to navigate the difficulties of farming divorce. Our specialist knowledge, combined with our compassionate and supportive approach, allows us to provide comprehensive and effective solutions for our clients.

Contact Mercedes and Holly to find out how we can help you and support you through this process.

Farming Divorce – A Supportive & Compassionate Approach

6 November 2023

Farms and farming communities are integral to rural life and play a vital role in our country’s economy. They are often referred to as the backbone of rural communities, but with the challenges that come with this way of life, families can face unique difficulties when it comes to a farming divorce. That’s why it’s crucial for farmers to have a legal team that understands their particular way of life and the complexities that come with it, like the team at Denney King does.

The life of a farmer is not just a job, it’s a way of life, where farming is intrinsic to their identity. With that being said, it can also be an incredibly isolating existence, where many farmers spend long hours working, with little or no support. This can lead to strained relationships and unfortunately, in some cases, divorce.

One of the biggest challenges facing farmers during divorce is the issue of assets and finances. Many farmers are ‘asset rich’ with capital tied up in land, machinery and livestock, but ‘cash poor’ with very little liquid cash available. The truth is that many farmers work long hours and put in a significant amount of effort, yet their lifestyle is often inconsistent with their declared income. This can make dividing assets during a divorce complicated and time-consuming.

A challenge for lawyers arises out of casual arrangements that many farming families have with each other, family members and neighbouring farms. It is common for farmers to work together in an informal arrangement, where they share equipment and labour when working on various parcels of land. This type of arrangement can make it difficult to determine who owns what, and it can be a complex issue to resolve during divorce proceedings. We at Denney King work closely with our property team in order to ensure accuracy when establishing the legal ownership and occupation of land.

It’s important for farmers to have legal advice and support from lawyers who understand the intricacies of a farmer’s unique way of life and the complexities that come with it. Mercedes and the family team at Denney King are dedicated to providing the support and guidance necessary to navigate these difficulties and achieve the best possible outcome.

Get in touch with Mercedes or Holly for chat if you think you could benefit from our expertise.

How to choose a good divorce lawyer who gives clear & honest advice

22 August 2023

There are hundreds of firms to choose from, how do you know which divorce lawyer is right for you or your client?

You will need to find a firm with a team that supports you by both recognising and understanding your priorities and concerns and can also explain how they will help you achieve your goals, rather than just merely process your case.

What makes us different from many other firms?

From the outset we invest in you, we immerse ourselves in your case so that we understand the dynamics of your family and the complexities of your circumstances, whether that be your farm, your business, your trust interests or perhaps your generational wealth. As a result we are able to ensure that we always have your goals at the forefront of our advice. We offer a strategic approach and pride ourselves on being solutions focused and giving honest and realistic advice, which our client’s really value.

We are experts in our field and our specialist team will work collaboratively with your trusted professional advisors to ensure that you receive well rounded and bespoke advice and a joined-up approach to your decision making. This consistency will ensure that we can support you with all aspects of your divorce including the valuation and liquidity of your business, options in relation to yours and your spouses’ pension assets and tax consequences, to name a few. We will also review your Will, and can prepare an LPA and, depending on the nature of your business can assist with preparing Partnership Agreements, drafting overage agreements and/or buying and selling agricultural land.

How can we help you?

We represent clients nationwide and regularly advise business owners, high net worth individuals, farms and landowners on complex financial disputes in divorce proceedings with particular experience and expertise in cases involving:

divorce lawyer, prenup, farm divorce, business divorce, divorce inheritance, pension divorce

Family farms/ farming partnerships
Family businesses
Complex business structures, assets and income structures
Inherited / generational wealth
Multiple Properties/ property portfolios
Third party interests, intervenors and proprietary estoppel claims
Trust assets
Substantial pensions/ final salary pensions

For an initial FREE call with a divorce lawyer from Denney King, please contact Holly here or call on 07936951063

Holly Smith – LinkedIn

A Supportive & Compassionate Approach to Farming Divorce

7 March 2023

Farms and farming communities are integral to rural life and play a vital role in our country’s economy. They are often referred to as the backbone of rural communities, but with the challenges that come with this way of life, families can face unique difficulties when it comes to a farming divorce. That’s why it’s crucial for farmers to have a legal team that understands their particular way of life and the complexities that come with it, like the team at Denney King does.

The life of a farmer is not just a job, it’s a way of life, where farming is intrinsic to their identity. With that being said, it can also be an incredibly isolating existence, where many farmers spend long hours working, with little or no support. This can lead to strained relationships and unfortunately, in some cases, divorce.

One of the biggest challenges facing farmers during divorce is the issue of assets and finances. Many farmers are ‘asset rich’ with capital tied up in land and livestock, but ‘cash poor’ with very little liquid cash available. The truth is that many farmers work long hours and put in a significant amount of effort, yet their lifestyle is often inconsistent with their declared income. This can make dividing assets during a divorce complicated and time-consuming.

A challenge for lawyers advising farming clients arises out of casual arrangements that many farming families have with each other, family members and neighbouring farms. It is common for farmers to work together in an informal arrangement, where they share equipment and labour when working on various parcels of land. This type of arrangement can make it difficult to determine who owns what, and it can be a complex issue to resolve during divorce proceedings. We at Denney King work closely with our property team in order to ensure accuracy when establishing the legal ownership and occupation of land.

It’s important for farmers to have legal advice and support that understands the intricacies of a farmer’s unique way of life and the complexities that come with it. Mercedes and the family team at Denney King are dedicated to providing the support and guidance necessary to navigate these difficulties and achieve the best possible outcome.

Get in touch with Mercedes for chat if you think you could benefit from her expertise.

Navigating the 5 Stages of Grief in the Divorce Process

7 March 2023

Along with moving house, losing a loved one and unemployment, divorce is one of the most difficult and emotional experiences a person can go through. The process of ending a marriage and the journey of starting a new life can be understood through the lens of Kubler Ross’s five stages of grief, as it often involves a similar process of loss and acceptance. It is important to have professional support from lawyers who understand these stages. Mercedes and the family team at Denney King offer strategic advice in a kind and compassionate way to make this difficult time as easy as possible.

Denial

The first stage of Kubler Ross’s model is denial, as it may be difficult to accept that the divorce is happening. This can lead to feelings of disbelief, shock, or numbness. Similarly, in the divorce process, many people may not want to face the reality of the situation, and hold onto hope that the relationship can be saved.

Anger

The second stage is anger which manifests as aggression, frustration and irritation. Very often, these emotions are directed towards a partner, friends, family or the situation. In the divorce process, this is common with people feeling as though they have been wronged or that the situation is unfair. This can lead to hostile negotiations and a difficult, combative legal process.

Bargaining

The third stage is bargaining, where people may try to find ways to avoid the situation or make a deal to keep the relationship intact. In the divorce process, this may involve trying to find a way to reconcile or rush into an ill-thought-out settlement to avoid court proceedings. It can result in decisions made to try to get things over and done with but, in hindsight, they result in regret.

Depression

The fourth stage is depression, marked by feelings of sadness and a sense of hopelessness. This is often a difficult time for those going through a divorce, as they may feel a sense of loss and hopelessness, not just for the marriage, but for their future as well.

Acceptance

The final stage is acceptance, where the individual may finally come to terms with the situation and move on with their lives. This is often a turning point in the divorce process, as people may finally be able to let go of the past, consider their options and start to look towards the future.

Having the right support

Recognising the grief can be more complex as very often the stages are not always experienced one after another. Having a lawyer who is sensitive to these stages is critical in ensuring a smooth and stress-free divorce process. A good lawyer will understand that their clients are going through a difficult time, and will be able to provide support and guidance throughout the process. They will also be able to provide advice on a negotiated settlement, taking into account the emotional and practical considerations involved.

At Denney King, our family team has a wealth of experience in helping clients through the divorce process. Our team is made up of compassionate and understanding lawyers who are dedicated to helping their clients achieve the best possible outcome. Mercedes works with her clients to find a solution that works for them in order to achieve a positive outcome and help them move forward with their lives.

Protecting Generational Assets During Divorce

7 March 2023

Denney King specialises in complex divorces, including those in which a family farm is the central asset. Mercedes King-Jones and the family team understand the unique challenges that farmers face when going through a divorce, especially when it comes to assets such as the family farm.

The family farm is usually an inherited asset which is not just a home but a way of life and an integral part of a farmer’s livelihood. The team at Denney King is experienced in advising on the complexities surrounding these assets. We are mindful that the family home is central to the farming business and we work closely with our clients, their accountants and land agents to protect the farm during and after the divorce.

We understand that the family farm is often passed down from generation to generation, and we work to ensure that this asset is protected for the family’s future. We consider the history of the farm and any previous decisions made for tax planning purposes. We are also aware that sometimes the decision makers are not always a party to the divorce proceedings, but may be a separate influential third party.

In addition to our specialist divorce team, we also work closely with our private client team to provide a well-rounded approach for our clients. This close collaboration allows us to address all the complex issues that arise during a farming divorce, including tax implications, inheritance, succession planning and protection of the family farm for future generations.

At Denney King, we are committed to providing our clients with the support and expertise they need to navigate the difficulties of farming divorce. Our specialist knowledge, combined with our compassionate and supportive approach, allows us to provide comprehensive and effective solutions for our clients. Contact us to learn more about how we can help you.

Divorce and the Family Farm

5 February 2023

All you need to know about divorce and the family farm…

The importance of expert legal advice for divorce involving a family farm cannot be overstated. Divorce is a challenging and emotional time for families, especially when it involves a family farm, a valuable and often multi-generational asset. Expert legal advice from experienced lawyers can make all the difference. At Denney King, our family team led by Mercedes King-Jones, is ready to help clients achieve the best possible outcome with honest, practical and jargon free advice.

Supporting Your Family

Our family lawyers, Mercedes, Holly and Ellie, approach divorce with sensitivity and empathy, while also providing clients with the legal expertise they need to navigate the complexities of dealing with a family farm. They can help to negotiate a settlement that takes into account the unique needs of the parties and the farm, in a way that encourages a problem solving approach and reduces adversarial conflict.

importance of expert legal advice for divorce

Protecting Your Farm

Our experienced lawyers at Denney King understand the importance of protecting generational and inherited assets such as a family farm, during a divorce. We work with clients and their trusted advisors to ensure that the farm is valued accurately and that any settlement minimises any negative impact on the farm’s value and viability.

Our Practical Approach

At Denney King, we work closely with our Agriculture, Farming and Estates team headed by Sarah Denney-Richards. The team have the specialist knowledge and experience necessary to help clients deal with their family farm in a divorce in the most realistic, commercial and practical way possible. We take an holistic approach to each case and our agricultural property lawyers can provide advice throughout the process and offer seamless support to implement the terms of any settlement or Court Order.

Looking to the Future

If a family farm is to be passed down from one generation to the next, estate planning and succession must be properly considered during and after the divorce process. Becci Mainwaring, Senior Associate at Denney King can advise on business structures, wills, trusts, LPAs and estate planning so that these important considerations are taken into account and that the future of the farm is protected.

When dealing with a divorce involving a family farm, it’s important to have expert legal advice from the outset. Understanding your legal position will enable you to make informed decisions. Please feel free to contact Mercedes or Holly for an initial chat if you would like to discuss your options.

Mercedes King-Jones & Holly Smith