Will my spouse get half of my business if we divorce in Louisville? If either or both of the former spouses own an interest in a business or professional practice or they share in the ownership of a family business it will be a substantial issue in your divorce.
Here in Kentucky, marital property is to be divided equally between the parties during a divorce. So the first question will be to identify if the business or professional practice interest is “marital property” or “separate property.” If the business was begun or acquired before the date of your marriage at least a substantial portion will usually be considered as your separate property. If any marital funds were used to support that business in any way there could be a marital property interest in your business.
If the business or professional practice was acquired or begun after the date of your marriage it will usually be considered to be marital property.
The question ‘Will my spouse get half of my business if we divorce…’ is directly tied to the nature of the business asset in the Court’s eyes. If part or all of the business or professional practice is considered to be marital property your former spouse is entitled to half of the value of that marital interest if you wish to keep the business or practice.
The basic process to determine the value of the marital interest is a process known as “valuation.” Usually an outside business appraisal expert is hired by each party, or they agree to hire an independent appraiser together. Once the Court has all information regarding the business and its valuation the Judge will determine the marital interests of each party.
If there is a marital property interest in the business or professional practice the business owner who wishes to retain their ownership must compensate their former spouse for their portion of the marital interest. This is usually accomplished through an “offset” of other marital property, retirement accounts, a loan or a secured legal instrument.
Will my spouse get half of my business if we divorce in Louisville? Yes, if any portion of the business or professional business is determined to be marital property. Each party is entitled to half of the marital property. Learn how to protect your interests in these complex legal and financial cases.
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.
