When a Jefferson County or Louisville divorce involves a closely-held business or substantial ownership in an S-Corporation, C-Corporation, partnership or professional practice the case becomes much more legally complex. The proven business valuation strategies in a Louisville divorce and the experience of your attorney will make a substantial difference in the outcome.
The issue is the marital interest in the spouse’s business ownership. If the spouse owned the company prior to the marriage (and no marital funds were used to support the business) it may be considered separate property. However, if the business was started or acquired during the course of the marriage it is considered a marital asset and must be divided accordingly.
What business valuation strategies can be applied to a Jefferson County or Louisville divorce? Dodd & Dodd works with expert witnesses to establish a valuation of the business interest in question. There are several techniques to establish a business valuation including but not limited to:
- A multiple of annual gross sales
- Appraisal
- Offering the business for sale
It is important to make sure the divorce doesn’t impact the ongoing operations or profitability of the company in question. Offsetting the community interest may be done with cash, stocks or equities, retirement accounts, equity in the family home or any other negotiated manner.
Both parties must consider the tax implications of the transaction. The experienced divorce attorneys at Dodd & Dodd have decades of expertise with proven business valuation strategies in a Louisville divorce. We can help to protect the ongoing operations and value of your business or professional practice while accomplishing your goals for the divorce.
If you are concerned about how a business interest will be handled in your divorce we invite you to contact us or call 502-584-1108 to schedule an appointment with one of our skilled and experienced attorneys.
