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Divorce considerations for business owners

On Behalf of | Apr 4, 2019 | Divorce

Arizona spouses who decide to divorce may face an array of emotional, practical and financial complications during the property division process. This can be challenging for almost anyone, especially when sentimental items or high-value assets are involved. However, it can be even more difficult when a family business is part of the divorce.

Before entering into serious negotiations over handling the business in relation to the property division process, it can be important to understand how much the company and its assets are worth. An independent expert can review financial statements and other documents to establish a valuation for the family business. Spouses involved with the company may tend to overestimate or underestimate the market value of the company, but an independent expert can set a baseline for negotiations.

There are three approaches that most couples take when determining the future of a business after a divorce. Most commonly, one spouse will buy out the other by ceding a greater share of the other marital property. This is perfect if just one spouse wants keep the business. In other cases, when the people involved are able to maintain a more amicable relationship, they may remain business partners even while ending the marital relationship. In still other situations, they may both sell the business and split the proceeds.

Business owners have particular concerns when it comes to property division during a divorce. A family law attorney can work with a divorcing spouse to negotiate an equitable settlement of outstanding legal matters, including dividing the family business.

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