For many women, a divorce brings more than emotional stress. Mothers who devoted their best years to raising children and supporting their husbands’ ambitions often worry about how they will support themselves after a divorce. If they contributed to the marital estate by working, they may have concerns about how they will keep their fair share of the estate.
For any woman going through a divorce, one important first step is to understand how dividing business assets during a divorce works. At WSM, we represent women in divorces and cases that involve large estates. Even a straightforward divorce requires strong legal representation to ensure that you are treated fairly in court.
Call 380-212-3731 to schedule your free consultation with one of our esteemed family law attorneys. We are proud to represent women in Ohio, Indianapolis, Kansas City, Northern Kentucky, and Central Texas.
Early on in a divorce, when dividing business assets, you may be wondering whether you or your husband’s company is subject to division through the courts. The answer depends on several factors.
Even if your spouse started the business before the marriage, the increased value during your marriage may be considered marital property. If you contributed by helping with books, marketing, networking, or even staying home with the children while your spouse focused on the company, that work can count.
Women often bring unique considerations when it comes to how businesses are divided during a divorce. They often think of not just themselves but also their children and how they will support them.
How a business is structured can influence the way the court views that company. In some cases, the business may be lawfully separated from the individual. An attorney can help you understand the implications for certain business types and how they are treated by the courts during a divorce.
Partnerships can be more complicated. The partnership agreement details how the company was formed and who owns the business. The agreement may include provisions about what happens if a partner divorces. Often, the couple’s share of the business is considered a marital asset.
If your spouse runs a sole proprietorship, the business isn’t legally separate from the individual. This type of business is treated like any other marital asset during a divorce. If one spouse “owns” the business on paper, the other partner likely has a claim to the company because it is viewed as marital property.
Depending on how an LLC or corporation is structured, a business may be partially shielded from division in a divorce. If one spouse owns shares in a company, those shares may be considered part of the marital estate.
An attorney can help when it comes to assessing the value of one spouse’s share of a company. Often, businesses opt to buy out a partner or buy their shares during a divorce to protect the company and its assets from being caught up in a court case.
Many couples form businesses together, never thinking that one day they would have to split the company. If you built a business with your spouse, a divorce can feel like a breakup on two levels. The idea of running a business following a divorce is often not appealing.
Common options for settling these situations can include:
It is rare for former spouses to continue working together, although each situation is unique. A family law attorney who understands the unique needs of women during these difficult times can help you assess your options so you can move forward with confidence.
If you have concerns that your family’s business is in his name, that does not mean that you are not lawfully entitled to half the value of the company, especially if the business grew during your marriage. Many women handle important administrative tasks and manage family logistics so their husbands can focus on running the business or make other sacrifices (such as postponing their own careers) to support the business.
No matter which state you divorce in, both parties are required to fully and honestly disclose their assets and debts. It is an unfortunate reality that some spouses believe they can intentionally undervalue their company or hide assets in a bid to keep more of the marital estate.
Many women are often put in the position of not knowing the true value of their family’s estate if they were kept in the dark about finances during their marriage. Your spouse may be hiding assets from you if you are not privy to the full scope of your spouse’s business dealings and investments.
Common ways one partner may hide assets or misrepresent the value of their estate include:
At WSM, we take these issues seriously. We know how to investigate and uncover financial irregularities that could impact the division of property. Our legal team works closely with financial professionals to ensure the full scope of assets is brought to light.
If you believe your spouse is hiding assets or undervaluing the family business, we can hire individuals who understand how to accurately calculate the value of your marital estate. Forensic auditors, for example, can determine what your family’s business is worth.
Divorce is about more than dividing what you currently own. It is about preparing for the future. If your spouse keeps your business, that could influence spousal support, child support, and property division. During a divorce, both parties are allowed to negotiate the terms of the division of the marital estate.
This could include steps that effectively look like bartering and trading. Having strong legal counsel during this time can greatly improve your chances of securing an outcome that places you on a strong financial footing.
WSM can help you:
Although you may not think of divorce as a time for financial planning, working with your attorney and potentially an outside financial advisor can help take away some of the uncertainty you are experiencing about your future finances.
Business assets are only one side of the equation. Dividing business debt is just as important when determining a fair financial outcome. Loans taken out for the business, lines of credit, equipment leases, and outstanding vendor payments may all be considered in your divorce.
If the business was jointly owned or marital funds were used to cover business costs, those debts could be classified as shared obligations. The team of divorce attorneys at WSM helps women determine which liabilities may be assigned to them and which should be attributed to the other spouse.
Dividing business assets during divorce is complex, emotional, and often contentious. You deserve to have someone in your corner who understands how much is at stake. At WSM, we provide strong representation for women dealing with the financial realities of divorce.
WSM is proud to represent women in Ohio, Northern Kentucky, Indianapolis, Central Texas, and Kansas City. Our team can guide you through the legal, financial, and emotional challenges of separating business interests.
Call 380-212-3731 today to schedule your free consultation and find out how we can help you protect what you’ve worked for.
Yes. If the business grew during your marriage, you are entitled to a fair portion of the value of that business. If you were actively involved in helping run the business or took care of domestic matters so your spouse could focus on the company, those factors can all be used in court to show that you are owed a portion of that company.
You may be surprised to learn that this is a common issue. When one partner keeps the other in the dark about finances, that can be a sign that they may be hiding assets. Tell your attorney. An experienced family law attorney understands how to address this problem so you do not miss out on your fair share of the marital estate.
You may be entitled to a larger share of other marital property or structured payments tied to future business income.
We work with professionals to assess the business’s fair market value, including income, expenses, assets, debts, and future potential.
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