In a recent ruling, the Family Court determined that a husband must buy out his wife’s share of their jointly owned music business as part of a clean break divorce settlement. This decision, made by Mr. Justice Cusworth, is aimed at ensuring a fair and final division of assets.

Case Background

The couple, married in 2007 and separated in 2022, co-owned a portfolio of businesses centered on the husband’s successful music career, including valuable rights to a lucrative catalogue of songs. The court ruled that the wife’s 49% share should be valued based on an independent expert’s assessment, rejecting the husband’s suggestion to use a previous, lower offer from a third-party buyer.

Court’s Decision

Justice Cusworth emphasized that the valuation provided by the expert, which considered necessary tax and commission adjustments, was the most reliable figure to proceed with. He dismissed the husband’s argument that the valuation should be reduced due to the passage of time since earlier sale negotiations. The court also addressed the husband’s concerns about potential tax implications of a future business sale, allowing him the option to delay the sale or buy out his wife’s share and bear those risks himself.

Financial Outcome

As part of the settlement, the wife will retain the family home, while the husband will continue to pay £18,000 per year in child maintenance for their two children, along with covering educational costs. The ruling ensures that the husband will maintain full control of the business, while securing a fair financial arrangement for the wife.

Justice Cusworth expressed hope that this outcome would allow both parties to move on, stating: “This outcome is fair to both parties and ensures their respective needs are comfortably met.”