You are facing one of the largest changes to your personal life after a divorce. What many people do not anticipate is just how much a divorce can impact your business, especially if you are a business owner. Could you lose your business? How is the business itself split during a divorce? Every situation is a bit different, which is why it is so important for you to turn to a legal professional to help you through this legal battle. There are a few things to consider.
Splitting the Business Is Not Always Easy
What is the division of assets in a divorce? Most of the time, during a divorce, the marital assets – those acquired during the marriage – are equally split, or split according to the court’s ruling. You can sell a home and split the earnings. You can split a checking account down the middle. It is not as easy to split a business up, though. What happens here is dependent on many other factors. This also makes the divorce a bit more complex.
What Can Happen?
The goal of divorce is to ensure that the starting pout of the separation allows both parties the same ability to move forward with the same level of financial stability. In some cases, that is a 50/50 split. In others, it is not. With the business, it may be possible to find a way to balance the business assets with other assets. For example, your spouse may agree to allow you to have the business, while they take ownership of the home. This, of course, must fall along the equal split that the court requires.
It will be important to have an up to date business valuation. It will be important to have the business’s debts fully understood as well. With the help of your attorney, you will be able to prove the worth of the business so that a split can occur properly. In some cases, where agreements may not be possible, it could be a requirement to sell the business. If you do not want this to happen, though, you will need to push for a solution.
Working with our experienced team at Keller Legal Services, we can help you. We can help you understand the division of assets in a divorce, including how they impact the value and ownership of your business. Let us discuss the options available to you and your best course of action.
