In the world of UK small-to-medium enterprises (SMEs), the line between “family life” and “business life” is rarely a straight one. You might have spent years supporting the growth of a company—perhaps by managing the books, sharing the initial financial risk, or managing the household so your husband could focus on scaling the brand.

But if the marriage reaches a crossroads, a vital question arises: If my husband owns a business, do I own it too?

In the eyes of Companies House, the answer is often “No.” In the eyes of the UK Family Court, the answer is almost always: “You likely have a claim to its value, even if your name isn’t on the paperwork.”

This guide explores the distinction between legal title and matrimonial rights, specifically updated for the landmark legal shifts of 2025 and 2026.

Does a Husband’s Business Count as a “Matrimonial Asset” in the UK?

In England and Wales, the law operates under the Matrimonial Causes Act 1973. When a couple marries, their individual assets often fall into what is known as the “matrimonial pot.” This pot is subject to the Sharing Principle, which suggests that assets built up during the marriage should be shared equally.

However, “ownership” is a multi-layered concept. It is crucial to distinguish between Legal Ownership and Beneficial Interest.

Legal Ownership vs. Beneficial Interest

The “Standish v Standish” (2025) Impact: What if the Business Existed Before Marriage?

One of the biggest contentions for SME owners is whether a business started before the wedding is “off-limits.”

For years, the law was murky. However, the landmark Standish v Standish [2025] UKSC 26 ruling by the Supreme Court has provided much-needed clarity. The court reinforced that non-matrimonial property (assets brought into the marriage) should not be subject to the equal sharing principle unless it has been “matrimonialised.”

What is “Matrimonialisation”?

An asset becomes matrimonialised when it is integrated into the marriage so deeply that it loses its separate identity.

• The 2026 Standard: Simply transferring shares to a spouse for tax planning (a common SME tactic) does not automatically make the business a shared asset.
• The Source of Funds: The court now looks more closely at the source of the wealth. If the business was worth £1m at the start of the marriage and £5m at the end, the £4m growth is likely matrimonial, while the original £1m might be ring-fenced.

How Your Business Structure Changes Your Rights

The legal “wrapper” of the business dictates how you can claim against it. On smebusinessblog.co.uk, we typically deal with three structures:

Sole Traders

There is no legal distinction between the owner and the business. The assets (vans, equipment, cash) are personal assets. These are the easiest for a court to redistribute because there is no “corporate veil” to pierce.

Limited Companies

A Limited Company is a “separate legal entity.” Your husband owns shares, not the assets themselves.

• The Good News: The court rarely orders a company to be liquidated or sold, as this “kills the golden goose” that provides family income.
• The Reality: The court will instead look at the value of the shares and may order a “lump sum” payment or an “offset” (where you get a larger share of the house instead of business shares).

Partnerships

If there are other business partners, the court must be careful not to penalise them. You won’t usually be given a seat in a partnership you weren’t part of, but your husband’s interest in that partnership will be valued as part of the settlement.

How the Family Court Values an SME in 2026

In a 2026 divorce, “guessing” the value of a business is a recipe for a legal headache. The court usually appoints a Single Joint Expert (SJE)—typically a forensic accountant.

Common Valuation Methods

1. Earnings Multiple Basis (Most Common): The accountant looks at the “maintainable earnings” (EBITDA) and applies a “multiple” based on the industry.
2. Net Asset Basis: Used for companies with high-value assets but low trading profits (e.g., property holding companies).
3. Dividend History: Assessing how much actual cash can be extracted from the business without destroying it.

Expert Tip: In 2026, courts are increasingly wary of “COVID-era” or “Inflation-spike” data. Accountants are now required to provide a “normalised” view of earnings over a 3-year period to ensure the valuation is fair.

“I Worked for Free”—Does Contribution Equal Ownership?

You do not need to be a director to have a claim. UK law explicitly states that the role of the “homemaker” is equal to that of the “breadwinner.”

• Direct Contributions: Managing the payroll, answering phones, or being a co-director.
• Indirect Contributions: Caring for children and managing the home, which allowed your husband to dedicate the 60+ hours a week required to build an SME.

The court views marriage as a partnership of equals. If the business grew during the marriage, you are generally entitled to a share of that growth’s value, regardless of your daily involvement.

FAQ about “If my husband owns a business do I own it too UK”

Can he transfer shares to his parents to hide the business?

This is a high-risk strategy. Under Section 37 of the Matrimonial Causes Act, the court can “reach back” and void any transfer intended to frustrate a spouse’s claim. In 2026, with digital footprints being what they are, “hiding” a business is nearly impossible.

Am I liable for his business debts?

If the business is a Limited Company, you are generally not personally liable for its debts. However, if business loans were secured against the family home, your equity in that home is effectively at risk.

What is a “Clean Break” order?

For SME owners, a “Clean Break” is the gold standard. It ensures that once the divorce is settled, you cannot come back years later to claim a share of his future business success (and vice versa).

Do I get 50% of the business?

Not necessarily. The court’s starting point is 50%, but they adjust based on Needs (who needs more money to house the children?) and Contributions. Often, “Offsetting” is used so the owner-spouse keeps 100% of the business shares while the other spouse keeps more of the liquid assets or property.

Practical Steps: What Should You Do Right Now?

If you are an SME spouse seeking clarity, follow this checklist to protect your interests:

• Gather “Form E” Evidence: You will eventually need to complete this. Start collecting the last 3 years of company accounts (filed at Companies House) and personal tax returns (SA302s).
• Identify “Persons with Significant Control”: Check the Companies House register to see exactly who owns the shares.
• Avoid “Kitchen Table” Valuations: Do not agree to a value based on what your husband says the business is worth. SME owners often downplay value during a split.
• Seek a “Forensic” Solicitor: Use a family lawyer who understands commercial law. If they don’t know what “EBITDA” or “Liquidity” means, they aren’t the right fit for an SME-related case.

Summary: Your Path Forward

While you may not “own” the business in a way that allows you to walk into the office and fire staff, the UK legal system ensures you “own” a claim to the wealth created during your partnership.

The Standish [2025] ruling makes it more important than ever to document when a business grew and how it was treated during the marriage.