As part of complex divorce planning, you and your spouse may be faced with dividing your family business. This aspect of divorce involves the consideration of many factors, including:
- Value of the business
- Who is best-suited to running the business
- Tax issues related to dividing the business
- Whether the business is marital or separate property or a combination
If you have a prenuptial agreement, it may contain a plan for what happens to the business in the event of divorce. Even with this agreement, certain issues may arise that will have to be resolved by a judge, or by you and your spouse through the Collaborative process, negotiation or mediation.
Generally, one spouse takes over ownership of the business as part of a complex divorce. The spouse who retains ownership is usually determined in part by some of the factors listed above. To split the value of the business, a judge typically determines whether the other spouse will be given compensation or other assets.
Your business is probably a significant portion of your family’s income and livelihood. Even though your marriage is ending, you should receive your fair portion of the family business.
If you live in or around Cincinnati and are involved in a complex divorce with your spouse, please contact the Law Office of John Heilbrun to schedule a consultation.