The question of whether business assets are shielded during divorce proceedings is a complex one, particularly when a limited company structure is involved. A common misconception is that incorporation automatically provides absolute protection. However, the reality is more nuanced and depends heavily on specific circumstances such as the nature of the business, the role of each spouse within the company, and the applicable jurisdiction’s laws concerning marital property.
The perceived benefit of limited liability can be significant, but it does not supersede marital property laws. Historically, business ownership was often considered the sole domain of one spouse, usually the husband. Modern jurisprudence increasingly recognizes the contributions, both direct and indirect, of both partners to the marital estate, potentially including the growth and value of a business. This recognition highlights the importance of understanding how family law interacts with corporate law.
