Divorcing As A Business Owner
Our attorneys at Koiles Pratt Family Law Group have helped countless business owners in Massachusetts shield their interests from soon-to-be ex-spouses. We are well-equipped to determine who retains ownership rights of a business and how much the business is worth, and then fight for fair divisions.
With a skilled negotiator and family law litigator at your side, you are in a superior position to protect your rights as the owner of a company. If you have an ownership interest in a company, it will be addressed in your divorce, as your ownership is a marital asset.
To address a business ownership, a judge will make distributions in accordance with equitable distribution laws. It is important to note that equitable distribution does not mean equal divisions. Instead, it is based on the principle of what is deemed fair and equitable to both parties.
Here are factors courts consider when addressing a business ownership:
- If business ownership was specified in a pre- or postnuptial agreement
- When the marriage occurred and when the business was acquired
- How the business was acquired
- Individual contributions to the creation, acquisition or operations of the business
Valuing A Company
The value of your business will depend on a variety of factors, including:
- The type of business
- Stock and book value
- Financial gains, losses, liabilities and earning capacity
- Stock values of similar companies
Businesses are valued differently in the context of divorce than other valuations. Our attorneys are well-versed in the divorce valuation process and will work with other experts to ensure your business is attributed to an appropriate value.
Dividing Businesses Through Mediation
If you and your spouse choose to do so, you may divide the business through mediation instead of litigation. Mediation gives you more control over business divisions instead of being subjected to equitable distribution laws.
In short, mediation can be beneficial if you and your spouse are looking to save time, money and retain control over the settlement terms.
Meet Our Dedicated Family Law Lawyers
Seeking high-quality legal advice before your business is divided is crucial. Call 978-744-7774 to schedule a case assessment at our Salem office or complete our online request form.