By: Andrea Badalucco, Senior Attorney, Foster Swift Law Firm
Who gets the business? How does the business impact the bottom line in dividing assets in a divorce? Are the funds from a business part of the spousal support or child support calculations?
If you or your spouse hold an interest in a small business, then you likely have an interest in that small business when it comes time to divide assets in a divorce. The sticking point on this asset is usually how to place a value on it. There are different types of businesses and different methods to value businesses. It is important to accurately come to a number on what that asset is worth.
At Foster Swift, we are a full service law firm that has not only family law attorneys, but also attorneys whose focus is business, corporate, tax and security law. Our attorneys have cultivated relationships with outside experts who specialize in valuation of business interests. Typically, you will want to hire an expert to study key aspects of the business. Your expert and your attorneys will share insights to arrive at the solution that will work best for you.
There are time when it makes sense for each side in a divorce to hire a joint expert to value of the business. However, depending on the nature of the business - and perhaps due to specific conduct during the marriage - it may not be possible to have a joint expert. This is a decision that you and your attorney need to make together at the beginning of your case.
With the guidance of your attorney, you'll be able to select an appropriate expert to value the business, to weigh your options on whether a joint expert makes sense in your case, to determine the best method to place a value on the business, and to make a place for how the business impacts the bottom line for asset distribution, as well as spousal and child support.
A small business as part of a divorce settlement must be treated with careful consideration. It's your family, your business and your divorce. Our experienced family law attorneys are here to help guide you and place you in most of your most advantageous position.
Andrea offers more than a decade of courtroom experience in civil, criminal, family law and juvenile matters. Drawn to the particular needs of clients in family law, Andrea has dedicated her time to serving those navigating the sometimes complex arena of the family court system. To learn more click here.