How is a family owned business divided in a Louisville divorce or in Jefferson County? If the business was in the family and the spouse owned their position in the company prior to the marriage it may be at least partially considered to be separate property. There will be a lot of questions regarding the use of marital funds to support the business and/or work done by the non-ownership spouse on behalf of the company which was not paid at market rate.
The first step is to establish the valuation of the family business itself. The marital property interest of each spouse in the business would be half of the ultimate valuation of the business. This would present four basic options:
1. Sell the business and divide the proceeds equally
2. Continue to work together as professionals, and keep the business
3. One spouse buys the other out of the business. This is usually accomplished out of the acquiring spouse’s own share of the marital property and perhaps a note for any remaining balance secured by the business.
4. Both spouses keep their ownership share, but one is replaced by another employee.
When the family business involves members of your extended family, the basic process is to establish the valuation of the business and the value of each spouse’s share as part of the division of marital property. In these cases the spouse who is “in the family” usually buys out the marital property interest of the other spouse.
The answer to “How is a family owned business divided in a Louisville divorce” is one of the most financially complex and legally challenging issues many divorcing couples will face. If you or your spouse own an interest in a business or professional practice you will need the experienced and proven divorce and family law attorneys at Dodd & Dodd to manage your case and protect your interests.
Dodd & Dodd has represented clients before Louisville family law court for decades. This experience informs the sound advice and counsel we provide to our clients. We have managed numerous cases involving a closely held business or professional practice and are prepared to assist with your case.
How is a family owned business divided in a Louisville divorce in Louisville and how can you make sure valuation is fair and accurate? We invite you to review the strong recommendations of our former clients and contact us or call 502-584-1108 to schedule an appointment with one of our experienced divorce and family law attorneys.
