Protecting Businesses And Other Assets During Divorce
During divorce, spouses must resolve a wide variety of legal issues, including the allocation of parenting time and parental responsibility, whether one spouse will pay child support or spousal maintenance, and the division of marital assets. Dividing assets can become especially complicated when one or both spouses own or operate a family business or professional practice. Protecting this valuable asset is often of primary importance for divorcing spouses, since they have put in a great deal of hard work into their business, and they will want to do everything they can to ensure that it survives their divorce.
At Botti Marinaccio, LTD., our attorneys have over 100 years of combined experience representing clients in complex divorce cases, and we understand the issues that often arise when divorcing spouses wish to protect their business interests. We take a personal approach to every divorce case, and we will work to protect your financial interests and ensure that you will be able to continue to reap the fruits of your hard work after your divorce.
Business Interests In Divorce
Business equity owned by one or both spouses is considered property, subject to equitable division. If the business was founded or acquired after the couple was married, the business is considered a marital asset. If one spouse owned the business prior to the marriage, it is considered separate, non-marital property. The increase in value of the business during the marriage may be considered a form of marital property. If a spouse contributed work and effort or finances to a non-marital business, they may be entitled to reimbursement for their contribution.
Proper valuation of a business is essential during divorce, and the assistance of a financial consultant may be required to determine the correct value of the business interests. A financial professional may be necessary to provide information about the business, including the actual value of its assets and inventory, projected earnings, and potential for growth, as well as each spouse’s percentage of marital and non-marital business equity. The skilled attorneys at Botti Marinaccio, LTD. are your source for presenting competent financial-related evidence necessary to protect and preserve your rights to an interest in business entities.
Maintaining Ownership Of A Business
A spouse who wishes to maintain their business and keep it in operation following their divorce may choose to buy out the other spouse’s share of the business, either through a monetary payment or through the allocation of other valuable marital property. If spouses own and operate the business together, and dividing the business’s assets is not feasible, they may choose to continue owning the business and working together as partners after their divorce. The spouses should, however, include an option in their final divorce agreement allowing one spouse to buy the other spouse’s share in the business at a future date.
One way to protect a business in the event of divorce is for spouses to make an agreement before divorce ever enters the picture. If one spouse owns a business prior to getting married, a prenuptial agreement can protect their business interests. If a business is founded after the spouses get married, a postnuptial agreement will specify how business ownership will be handled if a divorce occurs.
Contact The Divorce Lawyers Experienced In Asset Protection
With proper planning and the help of a skilled attorney, you can ensure that your business or professional practice will be protected during divorce. At Botti Marinaccio, LTD., we can help you understand your rights and obligations and work with you and financial consultants in order to reach a favorable resolution to any disputes that may arise during the divorce process. The law firm of Botti Marinaccio, LTD. solves problems through successful negotiations or, if necessary, at trial through a judge’s decision. Contact our main office today by calling 630-934-2192 or filling out our online contact form.