Dividing a Business After Divorce
The division of assets is often the most complex and contentious aspect of the divorce process. Oftentimes it is challenging, stressful, and overwhelming. Trying to come to a mutual agreement between yourselves is certainly possible, if not encouraged, but hiring an experienced lawyer to help with the various legal issues is recommended. This is especially true when it comes to dividing a business after divorce.
Dividing a Business After Divorce | What to Do
If either spouse owns a business, the proper way to determine the value of that business is to retain an expert who can calculate its value. Once the business is valued, the parties will negotiate – or the court will order – the non-titled spouse’s share. That share can range from 20% to 50%, and many factors impact a court’s decision – or a party’s negotiating position. Regardless of the amount, a specific mandate will be entered setting forth how the spouse who is not titled to the business is to be paid. If the payment is to be made over time, it may include an interest component.
Dividing a Business After Divorce | Handling a Mutually Shared Business
In most instances, when we deal with a business in which both parties work, it’s a business one of the parties started, or one party has more of a vested interest in maintaining the business. Depending upon the type of work done, the more-interested party may be more of a principal in the business. In that case, it will be natural for that party to retain the business. In some cases, however, the parties may have started the business together, and that presents a significant challenge. In some cases, the parties are able to continue working together, and can remain partners. It’s not always advisable, but it can work because success in such a partnership depends upon the parties themselves, and the level of their acrimony or cooperation. After a high-conflict divorce, however, it will be impossible for both parties to continue running that business.
If you have any questions relating to divorce or division of assets, please call our Saratoga divorce attorneys today. We would be glad to help in any way we can.