What Happens to a Family Business During a Divorce?
Posted on: August 27, 2019
Getting a divorce is always complicated. There are often custody agreements, child support orders, assets to divide, and the emotional aspect to overcome. However, when you share a business with your spouse, a divorce can be even more complicated as it’s your livelihood at state. If you own a business with your spouse and are considering a divorce, keep reading to learn more about what that procedure might look like.
Can I get a divorce if my spouse and I own a business together?
First and foremost, yes you can get a divorce if you and your spouse own a business together. However, this does add another level of complexity to your case and you should consult an experienced divorce attorney like Kendall Gkikas & Mitchell, LLP before proceeding.
How are rights to business property established during a divorce?
In a divorce case where the couple owns a business together, the rights to business property must be established. If the company was started when the couple was married, it will most likely be considered community property with a 50-50 split. If one spouse brought the business into the marriage, a 50-50 split might not accurately depict the business property rights. In that case, the judge will establish what percentage of the business will be considered community property. The courts will also look at each spouses’ contributions to the business during the marriage to help them determine the amount of community property.
Who determines the value of the business?
Once it has been established how much of the business will be considered community property for the divorce case, the next step is determining the value of the business. This is done by taking market valuation, income valuation, and/or asset valuation into account. Once the business is valued, the court—or you and your spouse through mediation—will determine how to divide the property.
Will someone help ensure that I get a fair share of my business during a divorce?
Dealing with the emotional and financial aspects of a divorce is difficult as is, but bringing a shared business into the equation makes it more complicated. Thankfully, a family law attorney like Kendall Gkikas & Mitchell, LLP can help ensure you get a fair share of the business during the divorce process.
Contact Kendall Gkikas & Mitchell, LLP for help with your business property issues!
If you are looking to get a divorce, but want to ensure that your business property is handled properly and fairly, contact Kendall Gkikas & Mitchell, LLP right away! We have over 25 years of experience as a family law firm and our lawyers will fight to ensure that you get an equitable agreement. Whether it’s determining the value of your business, dividing assets fairly, or dealing with how the business will function after the divorce, the trusted divorce attorneys at Kendall Gkikas & Mitchell, LLP will fight for you every step of the way. Contact us at 909-482-1422 today to schedule your consultation!