A landmark published judgment in which Higgs LLP represented the claimant has seen the Family Court order the sale of an owner-managed business worth £7.8million, as part of a divorce settlement following the marriage breakdown of more than 20 years.
The judgment in LE v EL [2024] handed down by HHJ Rowland (published in September 2026), concerned a case in which the defendant was the CEO and majority shareholder of a successful private company. He held 75% of the shares, with the claimant holding 25%.
This is believed to be the first published case where a court has ordered the sale of a trading business, rather than presenting the owner with alternative options to meet the financial settlement.
The claimant sought the sale of the business and an equal division of the proceeds whereas the defendant proposed to acquire the claimant’s shares and pay £1.8m over several years. HHJ Rowland rejected the defendant’s proposal on the basis that this represented just 28% of the overall assets in the marriage, as well as uncertainty over how he would afford such payments.
The court therefore ordered the sale of the business and its subsidiaries, with the proceeds to be divided equally after settling relevant costs and a director's loan account.
The subsequent costs judgment, LE v EL (Costs) [2025] awarded the claimant £150,000 in costs, with the court noting that her proposals to sell the businesses and divide the proceeds equally were particularly significant when compared with the defendants’ proposals.
For a business owner-manager, the prospect of divorce can create an extremely complex set of issues. A successful business is usually the product of decades, perhaps generations, of hard work and dedication. It can also be the primary source of income for a family, while also representing the most significant matrimonial asset.
“What makes this case significant is the court's willingness to prioritise a fair, practical and enforceable financial outcome where the alternative proposal created unacceptable liquidity and non-payment risks.
“The decision is an important reminder to business owners that retaining their business following divorce cannot necessarily be assumed. Where a business represents a substantial part of the matrimonial assets, its future ownership may need to be considered alongside the wider financial position of both parties.
“For business owners, or the spouse of a business owner, taking specialist advice at an early stage is extremely important. Understanding how the business might be valued and treated in financial remedy proceedings and considering the different ways a settlement could be achieved, can be critical to protecting both the interests of the parties and the future of the business.”
Philip Barnsley
Head of Family Law
This case is a useful reminder that in the right case, the sale of a business, even when opposed by the proprietor, is an order that the court won’t shy away from in the unrelenting pursuit of a fair outcome,"
Brent Molyneux KC
Leading Counsel, 29 Bedford Row
This decision by HHJ Rowland provides a rare example of a case in which the court has, in the exercise of its discretion, after weighing all the relevant factors, determined that fairness could only be achieved by an order for sale of the family business. Hitherto, reported decisions in which the court has determined that the “golden goose” should be sold have been vanishingly rare. This is an important milestone along the current direction of travel which has followed the December 2023 decision of Peel J HO v TL, in which the courts are showing an increasing willingness in sharing cases to contemplate making an order for sale of a family business with an equal division of the net proceeds - an outcome which has long been, in essence, the default position with regard to the family home."
Juliett Allen
Junior Counsel, 36 Family
The judgment is also notable for the court's emphasis on the sharing principle and the need for fairness between the parties, irrespective of their roles within the business, during the marriage.
The case was handled at Higgs LLP by Philip Barnsley, Head of the Family Law team and Ellie Norton, Principal Associate. Brent Molyneux KC of 29 Bedford Row and Juliet Allen of 36 Family, instructed by Higgs LLP, also appeared on behalf of the claimant.
