Divorce And Owning A Business
Just as each marriage has its own way of socializing with friends and family, every union earns income and handles expenses in the manner that the two people involved are most comfortable with. For some couples, household income does not come into the home because one of both individuals is employed by an outside business. Instead, money is generated by running their own business.
If you are preparing for a Pennsylvania divorce and you own a business of your own or run one with your spouse, discuss your situation with a skilled Bucks County family attorney. All of your marital assets will go through the process of asset division, and this could involve your business as well. After looking over the facts, a lawyer will know if your business is separate property or marital property.
Setting a Value for Marital Property
The date your business was established could be part of determining if it is a marital asset. For example, if you were already married when you started your business, it is likely shared property. This is true even if your spouse did not make daily decisions about the organization.
In order to equitably distribute property during a divorce, the value of each asset needs to be set. You can streamline the process by having the following documentation compiled for review.
- Financial statements and tax documents
- Incorporation documents
- Third-party valuation sources, such as insurance statements
- All other records connected to the date of your business being established and the value of the asset over time.
On a personal level, you should also decide if you want to keep the business. When your lawyer understands your objectives, whether that is retaining ownership, liquidating the asset, or holding it for a few years before moving on to another project, they will have the knowledge required to secure the best outcome through negotiations on your behalf.
When Your Spouse Attempts to Shield Assets
There are also situations in which your spouse tries to protect their business assets from you as they are concerned you will access more than they believe you should through the divorce process. Then, it is essential every piece of evidence is carefully examined to be sure there is no fraud or hiding of assets. Accountants and other financial professionals can be particularly beneficial in these circumstances. Talk to a Bucks County family attorney if you suspect your spouse is understating the value of their business.
Are you a business owner navigating the divorce process? Business ownership can make a divorce more complicated, particularly if the business puts you and your spouse in a high net worth category. To fully understand your choices, connect with the family law attorneys at Kardos, Rickles & Hand. With extensive knowledge in asset distribution, our attorneys will listen closely to your goals and assess the facts of your situation. Then, we have the knowledge needed to strategize next steps. We will fight for your objectives each step of the way. With an aggressive attorney by your side, the future you want is possible. To get started, call 215-968-6602.