When Business Owners Are Facing Divorce
Complex property division can be challenging for people with all types of marital estates, but business owners often struggle with extra layers of difficulty. Attempting to equitably calculate a fair division of marital assets can bring up questions of fairness such as the following:
- Did one spouse start the business on their own (possibly before marriage) and operate it on their own?
- Have both spouses participated in the business’s operations?
- Did one spouse sacrifice their career to help the other one’s business succeed?
- Does the business have enough assets to make a clean split feasible? (For example, if there are two restaurants or two stores involved, could each spouse end up with one of the restaurants or stores?)
Proposed business moves may seem emotionally burdensome on top of the interpersonal upheaval of a divorce. Working with an experienced, respectful and level-headed divorce law attorney can be reassuring as well as effective both for the family law and the business development aspects of the case.
Our St. Louis, Missouri-based attorneys have earned the respect of many business owners after guiding them through divorces with their business interests in mind along with family law considerations.
Business Valuation And Other Factors To Consider In A Divorce Involving A Business Owner (Or Two)
One of the most important issues in such a divorce is to figure out how to accurately value the business. Our team often works with business valuation experts to support an equitable division of assets.
Some business owners may wonder how to keep a business operating successfully during and after a divorce. If spouses are co-owners, one may want to buy out the other spouse’s share. Sometimes, one or both spouses adamantly want to sell a business and/or divide up the capital equitably at the time of the divorce, even if that causes a downsizing of the business.
Considering all options in their complexity can make settlement negotiations time-consuming. Our attorneys may urge our clients and their spouses to streamline negotiations about the division of personal property to allow more time, energy and resources for the vitally important division of business assets.