How to Protect Your Business Assets During Divorce
Going through a divorce is a challenging experience, and if you own a business, it can be even more complicated. Understanding how your business will be valued and assets divided will be essential if you are to protect your assets and keep control of the company. Here's what you need to know about business assets during divorce proceedings
Valuing Your Business
Going through a divorce can be hard enough without having to think about the value of your business and its assets. However, getting an accurate appraisal from an experienced professional is hugely important in order to reach a fair outcome. Though it may seem like an extra expense, hiring an appraiser who is familiar with all of your business's various components can save you money in the long run. An appraiser will assess your inventory, equipment, real estate, intellectual property and other aspects of your business and take any debt related to the business into account.
Dividing Assets After Divorce
Once your business has been valued, and both parties have agreed upon its worth, then it's time to divide up those assets. This process can be complex since there are many considerations, such as tax implications, stock options, retirement accounts and other financial obligations, which must be factored in when dividing up these assets. If there is any disagreement between divorcing parties over how these assets should be divided up, it may require court intervention or arbitration from a neutral third-party mediator. With their input and guidance, hopefully, you can reach a satisfactory solution that works for both parties.
The courts will evaluate each party's contribution to the marital estate when determining who should receive what portion of these assets after divorce proceedings have concluded. This means that if one spouse was solely responsible for running or managing a particular asset, then they may receive preferential treatment when it comes time for the division of those particular items after a divorce or separation takes place.
Summary
Divorce proceedings involving businesses can become very complicated very quickly if proper steps aren't taken beforehand. Having an appraisal done by an expert will help ensure that your way through this process as smoothly as possible. Knowing your rights regarding the division of marital property prior to beginning negotiations may also help prevent further disagreements down the line, which could prolong proceedings and further delay reaching a resolution. For more info, contact a family law attorney today.