How to handle the dividing of a business during a divorce

Nov 29, 2019 | Divorce

Property division is a major part of the divorce process and can be challenging for many couples. The family law system provides a process for divorcing couples to value property and work out a property division settlement agreement that both spouses can live with.

In some situations, the divorcing couple may own a business together, which may require complex business valuation methods and unexpected complexities. During a divorce, it is often necessary to ensure that the property being divided is properly valued; this property can include real estate or stock options. When a business is part of the property division process during a divorce, the divorcing couple should ensure that their business is properly valued.

When a business needs to be divided, the divorcing couple has a couple of options. They can sell the business, divide the business or one spouse can buy the other spouse out so that the business remains solely owned by one of them following the divorce. Using business accountants and financial experts to ensure the business is properly valued is an essential step for divorcing couples.

It is always helpful for divorcing spouses to understand the property division process and how the various assets that need to be divided will be evaluated and valued, so they can anticipate the challenges they may encounter in the property division process. Knowing what to expect beforehand can help them prioritize their concerns and protect their interests, so they can reach the best property division settlement agreement possible.

Archives