Brentwood Business Division Attorney
One of the most difficult parts of divorce often proves to be the division of assets. This is especially true for couples who own a business and who will need to decide how that business will function going forward. Ultimately, the fate of the business will depend on a few different factors, including whether the asset qualifies as marital or separate property, the value of the company, and whether both parties want to maintain an active interest in running the business in the future. For help deciding how to divide your business upon divorce, please reach out to our dedicated Brentwood business division lawyers today.
Valuation and Appraisal
A proper asset valuation and appraisal is one of the key factors used in determining what type of division of a couple’s business would be equitable upon divorce. This will in turn, require an assessment of:
- The couple’s salaries;
- The company’s expenditures;
- The value of the company shares;
- The company’s net and gross income; and
- Whether the spouse’s are co-owners of the business.
The results of this assessment will largely dictate how a couple divides a business, of which there are three main options: a buyout, co-ownership, and selling the business.
The Buyout
One common choice for many couples who co-own a business and who have filed for divorce is for one spouse to buy out the other’s portion of the company. Before this can be achieved, the parties will need to reach an agreement on the company’s value. Buyouts can be structured in a few different ways. A spouse may, for instance, prefer to receive a single lump sum payment, while others may settle for regular installment payments. In some cases, assets from the couple’s home, or retirement accounts can be used to perform the buyout.
Co-Owning the Business
Couples with an amicable relationship who both wish to retain an interest in a family business can instead choose to continue jointly owning the company, even after divorce. In some co-ownership arrangements, one spouse will continue to run the business, while the other agrees to accept payment from future profits, while in other cases, a couple could both agree to continue playing a role in the running of the company.
Selling the Business
Couples can also be compensated for their interest in the family business by selling the company to a third party and then dividing the proceeds equitably. This, however, is only an option for couples who no longer wish to operate the business or to retain an interest in the company.
Call Today to Set Up a Meeting
At Beal | Crutcher, our dedicated team of attorneys, who are also former and current judges and mediators, are uniquely equipped to help families come up with a property division agreement that best serves all of the parties’ needs. If you and your spouse own a business, have decided to divorce, and are unsure of what to do next, please reach out to our experienced Brentwood divorce legal team at 615-861-2304 today.
