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Dividing a business in a divorce

On Behalf of | Nov 4, 2015 | Divorce

When an Arizona business owner goes through a divorce, losing the company can be a big fear. Whether a business was jointly owned by the spouses or owned by just one of them, there will be questions about how the business assets should be divided in a divorce settlement. If a business owner plans ahead for a divorce, there may be a better chance of keeping the company

Business owners who are facing the end of a marriage may want to put their entrepreneurial mindset to work tackling the property division issues that will arise during their divorce. Although divorces are emotional events, a business owner should try to prepare a business-like plan for the divorce process. The first step in making a divorce plan is to gather information about the value of all of the assets and liabilities that are owned personally and by the company.

When business owners understands the value of all of their assets, they will be in a better position to negotiate a divorce settlement agreement that they will be happy with. During negotiations, it may be appropriate for the business owner to present evidence about their spouse’s level of involvement with the company. The contributions each spouse made to the company’s operations will likely be taken into account by the court in making its determination if an agreement cannot be reached.

A business can be divided in a number of different ways when the owners go through a divorce. People who are concerned that they will lose control of their business after a divorce may want to have representation from an attorney. An attorney may be able to help negotiate a settlement that allows one spouse to keep the business while reimbursing the other spouse for his or her share.

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