The Van, the Tools and the Workshop: How Divorce Courts Look at the Assets Behind Your Trade

Ask a tradesperson going through a divorce what the business is worth and you will often hear the same answer: it is not worth anything, it is just my livelihood. The van is on finance, the tools are second-hand, and the workshop — if there is one — barely covers its costs.

A family court takes a different view. Under the Matrimonial Causes Act 1973, the court must consider all of the parties' resources, and a trading business — even a one-van operation — is a resource. The phrase "it's my business" carries little weight once proceedings begin. What matters is what the business is worth, what income it generates, and how it can be dealt with fairly between spouses.

The Van Is Not Just a Van

The starting point is identification. A sole trader's business assets — the transit van, the scaffolding in the yard, the customer book, the goodwill attached to a local reputation — all form part of the matrimonial "pot". That is the case even where the business was started before the marriage or built up entirely by one spouse's labour.

This can feel unjust. Many traders see the business as the product of their own hands, separate from the household. The court's perspective is broader: if one spouse built the business while the other raised the children, paid the mortgage or worked a stable job with predictable hours, both have contributed to the enterprise in different ways. The contribution may be unequal, but it is rarely ignored.

Valuation: Harder Than It Looks

Valuing a small trading business is rarely straightforward. A sole trader with no separate legal identity is valued differently from a limited company. The court will typically look at:

• Tangible assets — vehicles, plant, tools and stock, adjusted for depreciation and any finance outstanding
• Profitability — usually drawn from two or three years of accounts, with add-backs for expenses a court may question
• Goodwill — the trickiest element. For a personal-service business that depends entirely on the owner's own labour (a self-employed electrician, for example), goodwill may be valued at little or nothing, since it would vanish if the owner stopped working

This last point matters. Courts are generally reluctant to strip a working trader of the tools of their trade, because doing so destroys the very income the family needs. The practical outcome is often that the trader keeps the business intact, and the other spouse receives a larger share of the remaining assets — the house, savings or pensions — to compensate.

Practical Steps Before and During a Split

For a trader facing divorce, a few sensible measures can protect the enterprise without crossing legal lines:

1. Get the accounts in order. Muddled books invite pessimistic or optimistic valuations. Up-to-date, accurate accounts from a qualified accountant are the best defence against an inflated figure.
2. Be realistic about value. A van worth £8,000 with £6,000 of finance outstanding is not an £8,000 asset. Agreeing a sensible valuation early avoids years of argument.
3. Do not move assets in a hurry. Transferring the van to a brother or the workshop into a new company shortly before separation is likely to be treated as a transaction intended to defeat a claim, and the court can unwind it.
4. Consider a post-nuptial agreement or shareholder protection where a business is significant, ideally before trouble starts.
5. Keep trading. Courts expect both parties to maintain income. Pausing work to damage the business's value harms everyone, including the person doing it.

Keeping the Business Running Through Proceedings

One of the most common fears we hear at Bentley Law is that divorce will mean selling the van or closing the workshop. In practice, that outcome is unusual. Financial remedy proceedings are designed to produce a fair division of resources, not to liquidate livelihoods. Interim arrangements can allow the business to continue operating while the case proceeds, and a well-negotiated settlement will usually ring-fence the trading assets in exchange for an offset elsewhere.

Where the business genuinely cannot support two households, options such as a deferred lump sum — paid out of future profits over several years — or a Mesher-style arrangement delaying the sale of the family home can bridge the gap.

Advice Worth Taking Early

The strongest settlements are built on early, clear advice. If your trade is your household's income and your marriage is under strain, speaking to a family solicitor before positions harden gives you the widest range of options. Bentley Law advises traders, sole directors and their spouses across England and Wales on financial settlements involving business assets. A short consultation now can save a great deal of cost and uncertainty later.