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This close alignment of family and business life can bring stability but it also means that when a relationship breaks down, the pharmacy is pulled sharply into the spotlight. By Katie Coleman and Richard Hough…

Community pharmacies often begin as family enterprises. Many are run by husband-and-wife teams, siblings, or multi‑generational owner‑pharmacists, who have invested both their finances and their personal identities into the business.

Divorce has the potential not only to reshape personal circumstances but also to disrupt a healthcare service which is relied upon by patients, staff and the wider community.

The pharmacy as a matrimonial asset

Family ownership does not shield a pharmacy from scrutiny in financial remedy proceedings. The Family Court has wide-ranging powers, and regardless of whether the business is structured as a partnership, sole tradership or limited company, the value of one or both spouses’ interests will be relevant when separating assets on divorce.

A key consideration will be whether the interest held in the pharmacy is a matrimonial asset, or whether it is considered “non-matrimonial”.

Even where only one spouse holds a professional registration or appears on the contract, where the pharmacy has been built up during the marriage, the courts will typically recognise the pharmacy to be matrimonial in nature.

This can come as a shock to owners who assumed that their clinical responsibilities or regulatory ties placed the pharmacy “outside” the remit of a financial settlement on divorce.

Whilst a spouse may have an argument that their interest in a pharmacy is “non-matrimonial”, and thus the starting point should be that their interest is ring-fenced, this will be fact-specific and doesn’t prevent the Family Court from considering the value of the interest held if this is necessary to meet the financial needs of the parties, or any children of the family. 

Valuation: A closer look under the hood

Pharmacies carry distinctive goodwill value which is driven by NHS dispensing volumes, service income, prescribing trends and longstanding relationships with patients.

In husband and wife owned and operated pharmacies, goodwill may also reflect the combined professional effort of both spouses, even if only one is the Responsible Pharmacist.

On divorce, a specialist valuation may need to be obtained by a forensic accountant, who will likely examine multiple years of accounts, prescription data, operating efficiencies and local competition to discern the value of the pharmacy.

It is also important to consider the tax position. The value of property interests, such as freeholds or embedded leases in medical centres, will also need to be considered.  

Will a divorce force a pharmacy sale?

The prospect of the sale of the pharmacy can be particularly concerning, as a pharmacy is not just a commercial undertaking, but an essential community service. A forced sale may be disruptive to patient care, destabilising for staff and potentially damaging to NHS service continuity.

Despite the value that is tied up in many pharmacies, the courts remain reluctant to force a sale if this can be avoided, particularly where the family relies on the income from the pharmacy.

Alternative outcomes include one spouse retaining the pharmacy and compensating the other via the other spouse retaining a larger share of the other capital assets, or by way of offsetting pension claims.

Further, in some cases, spouses may agree to continue running the business together (albeit this is generally not a preferred outcome due to the increased risk of conflict following divorce).

The Family Court has a duty to consider whether a “clean break” can be achieved if possible, and in family‑run pharmacies, achieving this can require careful consideration and sensitive restructuring.

Family dynamics add complexity

When family members work together, practical issues can arise long before any legal settlement is reached. Who continues to manage staff? Can the Responsible Pharmacist remain in post? Is it sustainable for separated spouses to continue operating side by side? These questions often need to be answered long before the financial negotiations conclude.

For pharmacies employing children or other relatives, relationship breakdowns can also complicate workplace dynamics, decision‑making and succession planning. Addressing these issues early with the benefit of legal advice can prevent operational instability.

Planning ahead protects the business

Pre- and post‑nuptial agreements are becoming increasingly common among pharmacy owners and are particularly valuable to those who are looking to safeguard their interest in a pharmacy.

Whilst nuptial agreements aren’t legally binding in England and Wales, they are likely to be given significant weight in contested financial remedy proceedings if they are freely entered with a full appreciation of the implications, unless it would be unfair to uphold them in the circumstances. A well-drafted nuptial agreement can provide clarity and peace of mind to couples and other business partners.

Clear financial separation, transparent management accounts and well‑drafted shareholder or partnership agreements can also significantly reduce disputes and uncertainty on divorce.

Early legal advice is essential, especially for multi‑site or family‑operated pharmacies where personal and professional lives are tightly interwoven.

Richard Hough is a partner and head of Healthcare at Brabners LLP and a former pharmacist. His co-author Katie Coleman is a solicitor at Brabners and family law expert.