The attorneys at Dodd & Dodd have decades of experience representing professional practitioners and business owners in Louisville divorce cases. Owning an interest in a professional practice or business in divorce is one of the most complex legal issues a person may face in the divorce process. This issue primarily relates to the division of marital property. Each spouse almost always has an equal stake in marital property and its division during a Louisville divorce.
How is the ownership of a business or professional practice handled in a divorce, and how is the marital interest of each party in the business established? There are several questions which must be answered including the timing of the acquisition or formation of the business itself, as well as the amount of marital assets used to either acquire it or support it.
If the business was owned by one spouse prior to the marriage it may be considered “separate” property outside of the marital property interest unless marital funds were used to support the business during the course of the marriage.
Professional practitioners and business owners in Louisville divorce cases want to know how to keep control of their businesses and ensure smooth continuous operations.
The division of the marital interest in a business asset begins with a valuation of the ownership interest itself. How much is it worth? There are several ways to establish valuation including appraisal, factoring the gross revenue, or offering the business itself for sale. Expert witnesses help to establish their valuation and the couple often has differing estimates of the value at stake.
Usually the business owner’s perspective is the company is worth less than their spouse and opposing counsel believe it to be.
There are even “poison pill” strategies where an operating agreement or other corporate documents may attempt to establish an extremely low valuation of the owner’s interest as a way of minimizing the impact of a divorce.
Professional practitioners and business owners in Louisville divorce cases are usually consumed with one question: “How do I keep my business running through the divorce and find a way to offset the marital interest so that I may keep my business?”
For all these reasons and more it is important to contact attorneys with extensive experience and legal skill representing business owners in Louisville divorce cases. We invite you to review the recommendations of our clients and contact us or call 502-584-1108 to schedule an appointment with one of our attorneys.
