Protecting Your Business Interests in Divorce
As a business owner, you have invested time, energy and money into running the business. Now, when divorce is being considered or is imminent, you may be wondering, “Is there anything I can do to protect my family-owned business during my divorce?” This is a common and valid question that our law firm answers for many business owners.
Various strategies exist to help owners and co-owners of family businesses emerge from the divorce process with their rights and finances intact. Robert J. Moraitis has been assisting business owners since 1983 and is well-versed in these strategies.
Business Valuation Is a Critical Part of Dividing a Family Business
Our divorce attorneys partner with professionals across many fields of business to ensure that the proper elements are considered in the division of your family business. We frequently collaborate with business valuation experts who delve into multiple facets of the business’ past, current and future projected earnings. A business valuation expert may consider figures such as the following when determining the value of a business:
- Financial statements
- Tax returns
- Past investments
- Future investment plans
- Futures forecasting
- Employee compensation
Additionally, depending on the type of business, the expert may place a value on trade secrets possessed by the company and its owners.
How Do We Divide the Family Business?
Once the business’ value is determined, we then set forth on equitably dividing it. We handle both types of business scenarios: when one spouse owns the interest in the family business and when both spouses own interest in the business.
Our attorneys apply practical solutions to the complex equitable distribution of a family business. We will take ample time to fully evaluate the pros and cons of each outcome, guiding you toward the result that will ultimately serve you best in the long term. In many divorces, one partner will obtain full control of the family business, using stock or other assets as a way to compensate the other spouse for his or her share. It may be possible for both spouses to continue operating the business together. However, this is a matter that should be given careful thought — for most, this is not an ideal situation.
We can talk to you about the benefits and drawbacks of each manner of dividing the family business. Our goal is to protect your rights and interests throughout all divorce proceedings while helping you reach your objectives.