Divorcing?
We Got This...

Options for dealing with a private business during a divorce

| Aug 13, 2020 | Divorce

The identification, valuation and division of property often take center stage for North Carolina residents during the marriage dissolution process. The process of division is simple when the asset is something like money in a bank account. However, things can become much more complicated when the asset is a shared interest in a private business.

Before the asset division process can begin, the value of the business needs establishing. There are times when spouses will agree on the worth of a business. However, the business value is often a source of conflict. In most cases, a professional will need to provide an accurate valuation.

The first option for settling the issue of a private business interest during a divorce is for one spouse to purchase complete ownership of the business interest from the other. This option is problematic when both spouses are equally attached to a business, but it is probably the easier of the options available.

A second option is to sell the business and divide the money gained from the sale. This process is not too different from the sale and division of proceeds from other assets. However, if both parties are not on board with a sale, the court would have to order it if the sale is to take place.

The third option for dealing with private business interests during a divorce is for the divorcing spouses to move forward as co-owners of the business. This option does not happen as often as the first two options due to the psychological and emotional challenges presented by such an arrangement.

Dividing the assets that result from years of marriage is often complicated. This complication can grow more intense when the asset division includes a private business interest or another complex asset. Individuals facing a divorce may be able to secure the desired outcome for themselves by consulting with an experienced divorce attorney.