In a landmark judgment in LE v EL [2024], handed down by HHJ Rowland and published in September 2026, the Family Court considered 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 the remaining 25%. The judgment saw the Family Court order the sale of an owner‑managed business worth £7.8 million as part of a divorce settlement following the breakdown of a marriage of more than 20 years.
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.
Juliet comments: “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.”
Juliet Allen was instructed by Philip Barnsley, Head of the Family Law team, and Ellie Norton, Principal Associate of Higgs LLP and appeared on behalf of the claimant. Juliet was led by Brent Molyneux KC of 29 Bedford Row.
Further information
For more information from the family team, contact clerks@36family.co.uk
Involving Juliet Allen
