Franklin Business Division Attorney
When going through a divorce, you’ll need to split up your assets. One household is turning into two, so all marital property is subject to division. This includes assets that are not so easy to divide, such as businesses.
Assets such as vehicles and furniture are easy to split up. Businesses? Not so much. If you or your spouse has a business and you are getting ready to file for divorce, expect a lot of complexity.
If you own a business, you are aware of all the elements involved, from taxes to employees to inventory to daily operations. Running even a small business is a monumental task, so as you can imagine, having to split up a business in a divorce is not going to be easy by any means.
So what happens next? What are your options? The Franklin business division attorneys at Beal, Nations & Crutcher has the knowledge to guide you through this type of divorce and make sure your case is handled with care.
Common Methods to Splitting a Business
There are several ways to split up a business after a divorce:
- Buy out. This is the most common method to divide a business. What happens is that one spouse essentially buys out the other. The buyout amount is based on the value of the company as well as the amount of interest a spouse has in the company. For example, let’s say a couple owns a construction business valued at $300,000. The husband may want to continue running the business, while the wife may want to sell her share and move on. The husband would owe the wife half of that amount, or $150,000. As you can see, this method only works when there is enough money to satisfy the buyout. Buyouts, however, can be structured. For example, the spouse could receive $100,000 now and $50,000 at a later date. Another option would be to give the spouse a different asset with similar value, such as a home or expensive vehicle.
- Co-ownership. Another option is to continue jointly operating the company. This only works if this is what the couple agrees on and they can continue to work together amicably. Another option is to continue to own the business together, with the other spouse relying on future business profits as part of his or her buyout. However, this is risky if the company is not successful.
- Sell it. If neither party is interested in continuing on with the business after divorce, or they cannot afford to do so, then the best option is to sell the business. The parties can then split the proceeds. However, this is not as easy as it seems. It could take a while to find a buyer, depending on the nature of the business. Plus, there could be some disagreement over the value of the business.
Contact Us Today
All marital assets are subject to split in a Tennessee divorce. This includes complex assets such as businesses.
Make sure you have the right help on your side. The law firm of Beal, Nations & Crutcher can help simplify the process. Schedule a consultation today by calling (615) 861-2304.