Is it harder for a business owner in a divorce in Louisville or Jefferson County? Kentucky business owners may wish to learn more about how their business will be handled in a divorce.
Business owners who are facing the end of a marriage may confront challenges which simply aren’t relevant to other couples. You’ve poured your life and hard work into this business or professional practice, and your spouse is focused on “marital property” and how half of the business is actually theirs.
Slow down. Pre-planning, strategy and sound advice and counsel are going to be important to you as you begin preparations. Divorce is a long, complex process and when a business or professional practice is involved it is even more so. It is often much harder for a business owner in a divorce and Dodd & Dodd will help protect your interests while providing some well deserved peace of mind. You’ve worked hard to build your company. We’ll help you to protect it.
The first question is whether the business is actually marital property or your own separate property, or a blend of the two. If you started or acquired your company or practice prior to the marriage and you have not used any marital funds to support it along the way the asset is probably mostly a separate asset. If it was acquired or begun during the course of the marriage it is probably a marital asset and some portion of the business’ valuation must be divided between the parties as part of the marital property division process.
Similarly, it’s important to bear in mind that business assets are not necessarily redistributed evenly during divorce. To determine how business redistribution may take place, courts will often review the length of time each individual spouse spent working on the business and how much of their individual resources they invested into its successful operation. This can be an amicable process if both parties can honestly attest to the nature of their contributions to a shared business venture.
Generally speaking, the owner of the business interest will ultimately offset any “marital” interest their former spouse may have in the company with some other asset such as investment or retirement accounts or equity in the family home. There are many options to protect your interests and preserve your business or professional practice through a divorce.
It can be much harder for a business owner in a divorce and you will need the sound counsel of the experienced business, divorce and family law attorneys at Dodd & Dodd. We invite you to review the strong recommendations of our clients and contact Dodd & Dodd or call 502-584-1108 to learn more or schedule an appointment. It doesn’t have to be harder for a business owner in a divorce but you will need to plan carefully and execute sound strategy to protect your interests.
