If you and your spouse run a business together and want to end your marriage, your shared livelihood will complicate your divorce. Each of you may have invested a lot in your business and you want to get a fair share of it. Unfortunately, it can be complicated to determine how your business assets will be distributed in a divorce. But, it can benefit you to have a divorce attorney from Ramos Law Group PLLC on your side.
Protecting Your Business During Divorce
Whether you own a business before marriage or expect to inherit a business when you get married, think about having a prenuptial agreement that specifies this business will be separate property.
If you and your spouse start a business while married, one of you could get sole rights to the business when you decide to divorce. If you have other partners or shareholders, the business’ bylaws could establish buy-out rules that permit the purchase of the share of a divorcing partner. A limited liability corporation (LLC) will protect your business from your spouse when you decide to split. The corporation would take all of the liability of the business and your spouse would have a claim against it.
Dividing Business Assets
When you and your spouse decide to divorce, one of you can buy out the other’s interest in the business you both owned. Another option is to divide the assets of the business equitably or sell them.
The fair value of your business’ assets and liabilities should be determined before you can sell the business. You might have to bring in a business consultant to examine the books, physical assets, and digital assets of your books, along with other factors. Then, it is important to determine whether certain business assets are marital property or separate property of a spouse.
Often, couples who want to divorce will work with a mediator and their respective lawyers to decide how their business assets will be divided. They may need to come up with a private separation agreement and property settlement that includes asset division.
If you co-own a family business and are headed for divorce, a family attorney can guide you through business assets valuation, division, or sale. They will protect your best interests while they work to help you settle your business ownership and asset division.