Getting a divorce can become significantly more complicated if you and your spouse have a stake in a family-owned business. If you’ve built a successful business over the years, you naturally want to protect everything you’ve worked for to the greatest extent possible.
If you’ve taken care of the home front or assisted with a family business in another way, you don’t want to be left in the cold while your spouse rides off with the whole of your (former) source of income. If you and your spouse had been business partners, you will have to decide if you will continue to own the business together, or if one spouse will buy out the other.
These are all complicated negotiations that can become emotionally charged, especially in the case of a high net worth divorce. If you’re anxious about how your business might fare in the wake of your divorce, our team at Daniel H. Stock, PLLC, can work closely with you to advise you of your options.
These are all complicated negotiations that can become emotionally charged, especially in the case of a high net worth divorce.
Putting A Price On Your Business
Before you and your spouse can divide your business fairly, you need a family-owned business valuation. You and your spouse can save money if you agree on hiring just one valuator to make a neutral assessment. However, it is not uncommon for spouses in more acrimonious divorces to hire separate valuators. A valuator will take into consideration both what your business brings in, and also what it owes to creditors. Business assets that are both tangible and intangible will go into a business valuation, including an assessment of:
In order to complete his or her assessment, a valuator will need to examine many documents, including:
• Business tax returns
• Bank statements
• Credit card statements
• Loan applications
• Financial statements
Attorney Daniel H. Stock will work closely and efficiently with single or multiple valuators to help determine your share of the jointly held business, also taking into consideration what parts of the business can be considered marital property and what parts constitute separate property.
Make an appointment to speak with divorce lawyer Daniel H. Stock by using our contact form or by calling us at 475-232-4105.