Divorce Lawyer for Women Business Owners

Are you a woman business owner facing the daunting prospect of divorce? Balancing the demands of your business with the personal upheaval of a divorce can feel overwhelming. By offering comprehensive support and professional legal advice, our team of divorce lawyers at WSM aims to help women business owners manage the challenges of divorce, protect their business, and secure a stable future.

If you are facing a divorce and need help protecting your assets, don’t hesitate. Call us today at 380-212-3731 to schedule your free initial consultation and get the support and representation you need during this critical time.

At WSM, we are proud to represent women throughout Ohio, Indiana, Michigan, and Texas, committed to protecting the interests of women like you and securing their futures.

Understanding Divorce for Women Business Owners

Divorce can be an incredibly serious and tumultuous experience for women business owners. The process can introduce a myriad of challenges, both personally and professionally. On the personal front, the emotional strain of ending a marriage can be overwhelming, often leading to stress, anxiety, and a sense of uncertainty about the future. Professionally, the impact can be equally significant. Business owners may face disruptions in their operations, financial instability, and the potential loss of business assets.

The financial implications can be profound, with many business owners experiencing a substantial drop in revenue during divorce proceedings. Ensuring that the business remains protected and continues to thrive requires careful planning and seasoned legal guidance.

Unique Challenges Faced by Business Women in Divorce

Balancing the demands of running a business with the emotional and logistical challenges of ending a marriage can be particularly taxing. Some of the specific challenges women business owners uniquely face include:

1. Potential Loss of Business Control: One of the most significant risks is the potential loss of control over the business. Depending on the laws in your state, your business may be considered marital property subject to division.
2. Financial Strain: Divorce can lead to substantial financial strain, with legal fees, potential alimony, and the division of assets. This financial burden can be especially heavy for business owners who may already be dealing with tight cash flows.
3. Operational Disruptions: The time and energy required to manage a divorce can lead to operational disruptions. This can result in decreased productivity, missed opportunities, and overall business instability.
4. Valuation Disputes: Accurately valuing a business during divorce proceedings can be contentious. Disputes over the business’s worth can prolong the divorce process and create additional stress.
5. Emotional Toll: The emotional toll of divorce can impact decision-making abilities and overall mental health, which in turn can affect business performance.
6. Balancing Personal and Professional Life: Maintaining a balance between personal upheaval and professional responsibilities is challenging. The stress of divorce can spill over into the business, affecting relationships with employees, clients, and partners.
7. Child Custody and Support: For businesswomen who are also mothers, child custody and support arrangements can add another layer of complexity. Balancing parenting responsibilities with business commitments can be particularly challenging during and after the divorce process.
8. Public Perception: There can be concerns about public perception and the impact of personal issues on professional reputation. Maintaining client and investor confidence during this time is crucial.

Understanding these challenges can help women business owners prepare and seek the necessary support to navigate their divorce while protecting their business interests.

Protecting Your Business Assets

Without proactive measures, your business could become subject to property division, putting its future at risk. Understanding the timeline of your business foundation in comparison to your marriage is key, as it can determine if the business is considered marital property. It is also vital to check if any legal provisions were established to protect marital property.

Prenuptial or postnuptial agreements and buy/sell agreements are two effective strategies to protect your business assets. 

Prenuptial & Postnuptial Agreements

Prenuptial and postnuptial agreements serve as effective mechanisms in protecting your business interests. These agreements can:

• Specify that a business and its assets are separate property, which helps ensure business continuity during and after a divorce
• Clarify ownership interests, preventing contentious legal battles over the business
• Include clauses to manage income distribution from the business post-divorce
• Address handling intellectual property created during the marriage

By utilizing these agreements, you can safeguard your business and its assets.

Prenuptial and postnuptial agreements can aid in maintaining control of the business with its original owner. This is particularly important if only one spouse is actively involved in the business operations. Carefully drafted agreements can prevent legal disputes over financial matters, making the divorce process smoother and less stressful.

Creating a Buy/Sell Agreement

A buy/sell agreement is another vital strategy for shielding your business during a divorce. This agreement establishes how a spouse’s interest in the business would be determined and specifies the amount of a cash award they would receive for their share. It can provide a mechanism for one party to buy out the spouse’s interest, ensuring the business remains operational and under your control.

By including terms for the sale and distribution of sales proceeds of jointly owned businesses, buy/sell agreements offer a clear, fair path forward.

Valuing Your Business During Divorce

Accurately appraising your business during a divorce is imperative for the just allocation of marital assets. In an equitable distribution state, the process involves classifying property as either marital or separate, valuing it, and distributing it between the spouses. Two commonly accepted standards of value in business valuations for divorce are fair market value and fair value. The fair market value includes discounts for lack of control and marketability, whereas fair value typically does not.

Jurisdiction statutes and case law dictate the applicable standard of value in divorce cases. For example, in Texas, fair market value is determined by the price a hypothetical willing buyer would pay a hypothetical willing seller without compulsion. Being aware of these standards can allow you and your divorce attorney to advocate for the most advantageous valuation method for your circumstance.

Enlisting professionals to investigate marital assets can also be beneficial, especially if there’s a suspicion of hidden assets. 

Options for Dividing a Business in Divorce

When it comes to dividing a business in divorce, there are three main options: continue as co-owners, buy out the spouse’s interest, or sell the business and split the profit. Each option has its pros and cons, and the best choice depends on the specific circumstances and the relationship between the divorcing spouses.

There are several options for handling a jointly-owned business post-divorce:

1. Co-ownership: Both spouses continue to jointly own and manage the business. This option is the least popular due to the challenge of maintaining a productive working relationship.
2. Buyout: One spouse buys the other’s interest in the business. This can be structured with payments over time.
3. Selling the business: The business is sold and the proceeds are split between the spouses. This is often the most straightforward method when other options are not viable.

Child Custody and Support

Child Custody

Handling child custody during divorce frequently ranks high among mothers’ concerns. Child custody refers to the legal arrangement regarding the care and control of a child after a divorce. Judges consider the primary caregiver when determining custody, meaning the parent who has consistently handled most parental responsibilities may receive more custodial time. Mothers might worry that their rights are not given full consideration in custody decisions.

The amount of time a parent who owns a business spends traveling can negatively impact their chances of getting 50/50 custody. Entrepreneur parents should ensure they are visibly active in their child’s life, as testimony from independent third parties about their involvement can influence custody decisions. Creating flexible custody schedules that accommodate untraditional working hours can also be beneficial.

Maintaining an amicable relationship with an ex-spouse can facilitate easier negotiations for flexible custody arrangements. Custody schedules are modifiable, and a parent can request changes if their circumstances substantially change. Understanding these factors can help you manage child custody more effectively during a divorce.

Child Support

Child support is a critical aspect of divorce that ensures the financial well-being of the children involved. It refers to the monetary contributions that the non-custodial parent must provide to the custodial parent to cover the child’s living expenses, including:

• Housing
• Education
• Food
• Clothing
• Healthcare

The court typically determines the amount of child support based on several factors, including:

• The income of both parents
• The needs of the child
• The standard of living the child would have enjoyed if the marriage had not ended

Business owners must provide clear financial documentation to ensure an accurate calculation of support obligations.

Ensuring timely and consistent payment of child support is crucial, as it directly impacts the child’s quality of life. In some cases, parents can negotiate child support terms outside of court, but these agreements must still be approved by a judge to ensure they meet legal standards and the child’s best interests.

Representing Women Business Owners

At WSM, we are deeply committed to representing women, particularly women business owners, throughout Ohio, Indiana, Michigan, and Texas. Our dedication is reflected in our tailored approach to each case, ensuring that the unique challenges faced by women in business are addressed with professionalism and compassion. With us by your side, you can expect:

• Legal Representation: We represent our clients in court and negotiations, ensuring their voices are heard and their interests protected. Our experienced team provides strategic advice tailored to your unique situation, helping you navigate the challenges of divorce. We are committed to fighting for your rights and securing the best possible outcome.
• Asset Division: We assist with the division of assets, focusing on retaining business ownership and control. Our approach includes thorough analysis and valuation of your business and other assets to ensure fair distribution. We work diligently to protect your financial interests and help you maintain stability during and after the divorce.
• Child Custody and Support: We provide guidance on child custody and support matters, creating flexible arrangements that accommodate business responsibilities. Our team of divorce lawyers understands the importance of maintaining a balance between your professional and parental roles. We strive to develop custody plans that prioritize the well-being of your children while supporting your business commitments.
• Financial Issues: We help you deal with complex financial issues, from valuation to tax implications. Our knowledge and skills include identifying hidden assets, understanding the financial sophistication of high-asset divorces, and providing clear, actionable advice. We aim to minimize financial strain and ensure that you are well-prepared for your financial future post-divorce.
• Advocacy: We advocate for women’s rights, ensuring fair treatment and avoiding biases in asset division and custody decisions. Our commitment is to empower women by providing strong, compassionate representation. We focus on achieving equitable outcomes that reflect your contributions to both your family and your business.

Our commitment to representing women is unwavering. At WSM, we understand the unique challenges faced by women business owners and are dedicated to providing the support and representation needed to secure their futures.

Contact Us: Divorce Lawyers for Women Business Owners

Our dedicated team understands the unique issues you face and is committed to protecting your interests. Call us today at 380-212-3731 to schedule your free initial consultation. Let us provide the support and representation you need during this critical time.

WSM is here to help, proudly representing women throughout Ohio, Indiana, Michigan, and Texas.

Frequently Asked Questions