Solicitors don’t just refer clients to insolvency practitioners when a company is in financial distress. In fact, Antony Batty & Company regularly works with legal teams across multiple departments, often before insolvency becomes a threat.
In this article, Jonathan James, Business Development Manager at Antony Batty & Company, Thames Valley explores two legal scenarios where family solicitors refer clients to us, not necessarily because the business is failing, but because the legal context creates financial vulnerability.
1. Issues caused by death/bereavement
Here, we look at two scenarios.
1a. What happens when a business is inherited without a Shareholder or Partnership Agreement?
It often becomes unstable. When a business owner dies without a clear governance agreement, their shares may pass to family members who lack the experience to run the company. Solicitors handling probate or estate administration refer these cases to Antony Batty & Company when:
- The business is financially vulnerable
- Operational continuity is at risk
- There is no clear succession plan
We assess the company’s financial health, advise on restructuring, and where necessary will recommend the appointment of administrators to protect value and ensure continuity.
Why Solicitors Refer: Inheritance without governance creates immediate risk. We help stabilise the business and guide families through unfamiliar territory.
1b. Can Contested Wills lead to business insolvency?
Unfortunately, yes. When a family business is part of an inheritance, disputes over wills can destabilise the company. Relatives may:
- Challenge the distribution of shares
- Dispute asset valuations
- Drain company resources through legal battles
Solicitors in private client or contentious probate teams refer these cases to Antony Batty & Company to assess the financial impact. We provide independent analysis, manage creditor expectations, and, if necessary, support restructuring or formal insolvency procedures.
Why Solicitors Refer: Legal disputes can quickly become financial crises. We help protect the business from collateral damage.
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Issues caused by separation, splits or divorce
Here we look at three scenarios
2a. Can Forensic Accounting help resolve Matrimonial or Mediation Disputes?
Yes! And it’s often essential. In divorce proceedings or family disputes involving business assets, solicitors need forensic clarity. Antony Batty & Company is frequently instructed as expert witnesses to provide independent, court-ready analysis of:
- Cash flow and liabilities
- Asset structures and ownership
We also support mediation – one of our directors, Lawrence King is a trained mediator – helping parties understand the financial implications of proposed settlements. Our goal is to ensure that any division of assets doesn’t inadvertently push a viable business into insolvency. (See this article about why insolvency practitioners make good mediators.)
Why Solicitors Refer: Without forensic accounting, settlements may be based on flawed assumptions, leading to future disputes or financial collapse.
2b. What if Life Partners are also Business Partners?
Divorce can dismantle the business. When each partner brings a unique skillset and the company relies on both, separation threatens viability. Solicitors handling these divorces refer clients to Antony Batty & Company to:
- Assess post-divorce business viability
- Advise on buyouts or restructuring
- Support controlled wind-downs if necessary
We help determine whether the business can survive and guide clients through commercial fallout.
Why Solicitors Refer: Divorce doesn’t just divide assets. It can dismantle operational capability. We help preserve value where possible.
2c. How can the absence of a Prenuptial or Postnuptial Agreement affect a Family Business?
It creates legal ambiguity and financial exposure. In divorces involving family businesses, the lack of a prenuptial or postnuptial agreement can lead to:
- Disputes over ownership and valuation
- Operational disruption
- Insolvency risk
Solicitors in family law teams refer these cases to Antony Batty & Company when the business is at risk. We assess financial resilience and advise on restructuring options.
Why Solicitors Refer: We bring clarity and stability to emotionally charged situations involving business assets.
Why should Solicitors refer early?
Because vulnerability doesn’t wait. In all of the scenarios above, the business may not be insolvent. but it’s exposed. Legal proceedings, emotional stress, and operational disruption can erode financial stability fast.
At Antony Batty & Company, we don’t just deal with crisis, we help prevent it. Our work with solicitors is proactive, strategic, and focused on preserving value.
What are the warning signs Solicitors should watch for?
Solicitors are uniquely positioned to spot early signs of financial vulnerability. Here’s what to look out for in each scenario:
Issues caused by death/bereavement
In estate inheritance without governance agreements
- No shareholder or partnership agreement in place
- Beneficiaries with no business experience or interest
- Operational disruption following the death of a key owner
In contested wills involving family businesses
- Disputes over share distribution or asset ownership
- Legal costs draining company reserves
- Leadership paralysis due to unresolved inheritance issues
Issues caused by separation, splits or divorce
In Matrimonial or Mediation Cases
- Disputes involving business assets with unclear valuations
- One party withholding financial information or business records
- Concerns about liquidity or hidden liabilities
In Divorce between business partners
- Breakdown of communication between co-directors
- Skills or roles that cannot be easily replaced
- Disputes over valuation or buyout terms
In Absence of Prenuptial/Postnuptial Agreements
- Divorce proceedings involving business assets with no prior agreement
- Conflicting claims over ownership or entitlement
- Risk of operational disruption due to legal uncertainty
If any of these signs are present, it could well be time to talk to us. Antony Batty & Company can provide independent financial analysis in the insolvency arena, restructuring advice, and, if needed, formal insolvency support to protect the business and its stakeholders.
Is Your Client’s Business at Risk?
Solicitors play a critical role in identifying insolvency risk before it becomes a crisis. Whether you’re in family law, private client, corporate, or probate, there are moments when your client’s legal situation intersects with financial vulnerability.
That’s when Antony Batty & Company can help – with clear, pragmatic advice and specialist support. Contact us for an initial free of charge discussion.
