Divorce is an overwhelming time even when the process is as simple and straightforward as possible. When one of the spouses in question owns a business, divorce can become an incredibly complicated affair. Remember that marital property is split during divorce proceedings, and your business might be considered an asset that belongs to the marriage – and, as a result, divided along with everything else. Business valuation, then, is often an important part of the separation process.
The real question, of course, is how exactly a business’s worth is determined. There a few different things to keep in mind when it comes to this particular process.
What structure is your business? There are a variety of different options, and each operates in a slightly different way:
• LLC: Also known as a Limited Liability Company, this kind of business is owned by members that can include corporations, individuals, foreign entities, and even other LLCs.
• Sole Proprietorship: This kind of business is owned by a single individual and is not incorporated.
• Partnership: A partnership refers to a business owned by multiple individuals who all dedicate their labor, skill, property, or money to the business and expect a portion of its losses and profits as a result.
• Corporation: This kind of business is owned by shareholders and its profit is distributed to these shareholders.
Determining the type of business you own is the first step in estimating its value. An experienced attorney can be incredibly helpful when it comes to this process, and might be able to help you ensure a fair and painless valuation.
Selling the Business
Once you understand the type of business in question, you can begin to figure out its value. One of the easiest ways to do this is by selling the business and then dividing the profits. This is a good option for individuals who are hoping to completely sever financial ties with their ex. It is most likely not a good option for individuals who want the divorce process to be a quick one, however, as selling a business can take quite a bit of time.
If you are hoping to avoid selling the business, as an aside, you can also opt to dissolve the business or buy out your spouse. The first option is another way to cut financial ties like credit or debt that is attached to the business. The second is, of course, the option to go for if you are hoping to keep the business.
Track Down Assets
Another important step in valuing your business is ensuring that you have located all of the relevant assets. This is a particularly difficult step, especially if you believe that some of those assets might be hidden. It is important that you reach out to an experienced attorney who has the skills necessary to carefully analyze your business holdings and determine likely “hiding” spots.
If you are contemplating a divorce and need help valuing your business, reach out to the professional team at Abear Law Offices! Our passionate team is ready to assess your case and start building a winning legal strategy today.
During a divorce, asset division is almost always the most complex and fraught part of proceedings, if only because both spouses are very invested in fairness. However, the process can take on an even more personal bent if one of the marital assets is a spouse’s professional practice—as a doctor, dentist, attorney, and the like.
There are times when divorce is a necessary step couples must take in order to promote a better life between both parties. However, if a couple’s divorce includes high assets or no assets at all, the process can be financially and emotionally straining.
Marriage is a huge commitment that involves several legal matters and, if not taken seriously, could result in a potential divorce. Therefore, couples often turn to prenuptial agreements prior to marriage in order to keep their assets accounted for and to potentially save the marriage. For many couples, this is an excellent opportunity to determine marital assets.
A divorce can be one of the most unpleasant experiences in a family’s life, especially when much time has been put into the relationship and in trying to give the best quality of life possible to everyone involved.
When going through a divorce, each spouse may have certain assets that he or she desires to keep—the marital home, family gifts, a boat, bank accounts, pensions, etc. Therefore, when it comes time to divide these assets, there may be tension. Hence, when dividing property and assets, each spouse needs to have a thorough understanding of the process.
Divorcing couples who have a high net worth often expect a long, drawn-out, contentious battle. Thankfully, divorce does not have to be this way. In fact, many couples find they can resolve matters outside of court, with less stress and cost. The key is knowing if and when you should settle. Perhaps even more important is knowing when not to settle your divorce case. The following information explains further.
Divorce is full of difficult decisions. One issue that our clients regularly face is what to do with their shared marital home. In some cases, one party wants to hold on to the residence, either by buying out the other spouse or by replacing an existing mortgage with a new mortgage that only lists one spouse. In other cases, both parties agree that selling the home is the best decision. There are advantages and disadvantages to keeping or selling the home, and long-term implications that come with either choice, so it is important that those going through a divorce seek the help of an experienced divorce attorney who can advise them on this matter.
Gray divorces, or divorces among adults 50 and older, are becoming increasingly more common. In fact, the divorce rate for Americans 50 years old and older has doubled over the past 14 years. Divorce for older Americans, however, has its own unique challenges. Older couples are often either planning for retirement or about to retire, and a divorce can throw a major wrench in those plans. The divorce process itself can be costly, but even after divorce, life as a single person is typically more expensive than married life when incomes are combined. In many gray divorce cases, one spouse hopes to keep their shared family home, but this is unfortunately often too costly for one spouse to handle on their own, especially if they have other large expenses. For this reason, many divorce specialists suggest gray divorcees consider selling their shared home during their divorce and splitting the proceeds. Now, in the United Kingdom, lenders across the country have announced plans to implement “divorce mortgages” at some point this year, and there is a large chance these mortgages will become available in the United States soon as well. Here is what you need to know.
If a couple decides to divorce, who gets the dog? It is a very serious question, considering some 80 million households in the United States own pets according to the American Pet Products Association. When a couple separates, can a pet be given split custody between two homes? Will a judge hold a custody hearing on a pet? For most pet owners, dogs and cats are as much a part of the family as any human members, but divorce courts across the country have little to say on the matter, leaving the future of millions of pets caught in the middle of a divorce in jeopardy each year.