Small business owners who go through a divorce are at substantial risk of having their business divided or in some cases even lost. Because small business owners frequently face substantial challenges during a divorce, it is often critical to obtain the assistance of a highly experienced divorce attorney who can make sure that your case resolves in the best possible manner. It also helps to understand some basics about what you can do to protect your business in these situations.
Immediately Take Steps to Protect Your Business
One of the most important steps that small business owners should take immediately in a divorce is to protect the business. While some small business owners decide to hide assets to conceal the business’s value, there is still a risk that an experienced accountant will be able to uncover these details. Rely on an experienced family law attorney who can help honestly assess the value of your business and can then determine the best course of action to protect the company, which might include selling, transferring, or dividing the business.
Unique Protection Strategies for Professionals
If you are a licensed professional like an accountant, doctor, lawyer, or veterinarian, it is important to understand that much of your business’s value lies in your license. While you might believe that a spouse could never take your license away from you, there are still ways that a former spouse could damage your practice. Fortunately, we have helped many solo practitioners and other types of professionals keep their license and reputation intact throughout a divorce.
Property Determinations
If your business was new when you first got married, but over time has grown significantly in size, there is a chance that your spouse will claim part ownership in the business. In cases in which a spouse does not co-own the business, courts still might view the business as marital property if your spouse made personal or financial contributions to the growth of the company.
The Value of Sources of Income
If your small business was successful, there is a good likelihood that it was the primary reason why your marital assets accumulated. Even if you managed to keep ownership of the business as separate property, there is still a high risk that income streams generated by the company will be viewed by the court as marital assets. Any outstanding debt by the company will also be taken into consideration when deciding what marital assets are owned by a couple.
Contact a Skilled Family Law Attorney
No matter the type of company, divorce can significantly impact the lives of small business owners. The judge might recommend that you divide your company in half, sell the company, or one of many other possibilities. It can make a great difference to obtain the assistance of an experienced lawyer during this difficult time who knows how to best preserve your company. Contact Vayman & Teitelbaum P.C. to obtain the assistance that you need to protect your small business through every step of your marriage and divorce.
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