Going through a Divorce Owning a Family Business? Here’s what to expect!
Very few life changes can impact a family business like a divorce, especially when the business is a successful and thriving establishment that has increased in value significantly over the years. For equitable distribution/divorced purposes, Spouses’ share equitably in the increase, value of the business during the marriage… Married couples rarely consider the possibility when starting and/or growing a business together that they will divorce and one party must buy out the other. This can easily be the most complicated component of a divorce, and it can impact all other aspects of the divorce /equitable distribution legal proceedings.. This includes spousal support payments, child support payments, potential sale or dissolution of the business, and alimony payments. . This is why it is vital for both spouses to have legal counsel who is experienced in both of these complicated business and divorce issues. .
An extremely important step in a divorce case that includes a family business is determining the business value. This is a complex process and more than likely requires the retention of experts, appraisers and professionals who are experienced in business valuations. Even when the business was started by one spouse before the marriage, increased business value that is built by the investment and operational input of either spouse during the marriage can still result in one divorcing spouse being entitled to an equitable distribution share in the event of a divorce. Once the value of the business is determined, the couple can begin negotiations, including divorce mediation, regarding a fair and equitable distribution of the business. Additionally, even when a prenuptial agreement exists, a divorcing spouse can still make a claim based on business growth throughout the marriage.
Ir is important to remember that the state views the equitable distribution . t of any business in a divorce very much akin to the business dissolution process. Therefore, it is always very important to have experienced legal counsel like the Philadelphia Business Planning Attorneys and Philadelphia Family Law Attorneys at Pozzuolo Rodden who understand how to effectively and accurately evaluate the business law and family law issues of family business that is involved with any divorce case. Contact us today.