It is not unusual for business owners and their spouses to devote their time, money and resources towards growing and maintaining the business.

It is also not unusual for them to divorce.

Some businesses are healthy, the shares easily valued and there is enough cash to pay out the divorcing spouse. As we emerge from a recession very few businesses fit that description.

Consider "Edith" who is hoping for a fair settlement when she divorces "Bob". She owns no shares in the business Bob started seven years ago.

The business was profitable before the recession but has struggled and the parties accept it is worth less today than it will be in five years' time. Apart from the shares, they own no other major assets.

Rather than accepting an immediate and possibly a low pay-out for her interest in the shares, Brachers have been able to help Edith in agreeing a settlement whereby she will take shares and participate in the future growth of the company.

If divorce means permanently parting married couples, then it seems bizarre that they should become joined as shareholders. Where no other arrangements are available and the business cannot support the payments necessary for a fair divorce, then the parties may wish to consider this route. It does have it attractions but also some dangers.

Whilst the court has the power to make an order by consent it is possible that the court may order an immediate payout or may order Bob to pay a share of the profits to Edith with payment of a capital lump sum in the event of the sale of the business.

Edith's entitlement to the income of capital of the business must be legally protected. If Edith does take shares in the business then a business agreement between the parties is imperative.

Some spouses (especially if this is not their first recession or their first divorce) have already structured their affairs so that they do not own the business outright - it might be in a trust or the business might be owned jointly with other third parties.

The negotiations in relation to a spouse's interest in a company or business involve matrimonial law and company law. It is imperative that business owners consider a company law strategy and that they also consider the likely impact upon the business of†a†divorce†and that they plan accordingly.