How to manage a divorce when you and your spouse own a business together?

Businesses provide sustenance to families (some more than others) and are considered properties (just like the TV and the couch and so on) as well, and when the marriage is going through a breakdown the business often emerges as a point of friction. Both spouses want a share of the business both sides should lawyer up!

However, New York, NY divorce lawyers know there are certain steps that can be taken to share the business without getting into an ugly legal battle. If they do not and do not work this out properly, they could lose the business like Frank McCourt lost the Dodgers in 2011 to Bud Selig and Major League Baseball. It was not a bankruptcy issue but resembled one, McCourt lost his team. The Dodges are now owned by Guggenheim Baseball Management.

Family held businesses can be Internet businesses, retail businesses, grocery stores, garment boutiques, restaurants, and even major sports teams as just indicated! Each type of business presents a unique set of problems but New York divorce attorneys say that there are basically three different methods by which this type of problem can be solved.

Co-ownership

Co-ownership of a business is one of the ideal alternatives if the spouses have an amicable relationship. This type of arrangement does not work if there is acrimony and mistrust among the partners. Both spouses must have a decent working partnership and must have mutual trust on each other managerial skills. Divorce lawyers in New York, NY say there must be no place for rancor and that the business will suffer immeasurably if the management is more interested in fighting amongst them.

Some outstanding employees will leave in a recession. Clients will be neglected and sales calls will go unanswered.

In the movie Snitch with Dwayne Johnson (John Matthews) he had the business and the ex (Melina Kanakaredes who played Sylvie Collins) did not but it seems in that scenario he grew the business after they broke up since his home was large and hers was not. Well, that was her fault. She chose to divorce him. She won custody of the child but again, the business grew after she left. And then Collins was upset he did not pay her more money and she never let him see his son, terrible parenting but not Matthew’s fault. He tried to see his son, his Collins would not allow it and she allowed their son to believe his own father did not want to see him.

The Business can be Sold and Proceeds Divided

If the business is sold and the capital from the sale is divided among the spouses then this money can be used by the spouses to invest in other ventures. After divorce the spouses are not financially tied to one another. However, the problem is that buyers are often not easily available and it may take some time to get someone interested in buying the business. And they may not agree on the price to sell it for.

Buy-out the other Spouse’s Share

In this alternative one spouse buys out the share of the other spouse. This is a fantastic option if the buying spouse has sufficient assets and financial means to pay the other spouse a fair share.

Community Property and Separate Property

In some states, a venture with joint funds during a marriage is community property. Whereas when a business is founded before a marriage it is deemed as separate property.

There are a few elements to determine whether a business is common property or must be considered separate property such as:

• The date on which the business was founded and the date of the marriage
• The source of the business start-up financing
• The financial and labor related contribution of each spouse must be considered

Often times businesses that are separate properties have certain community components to them. Some of these are as follows:

• If a contributory fund by both spouses is used in the expansion of the business
• If these financial joint contributions have played an instrumental role in the growth of the business
• If there is a value enhancement of the business that can be attributed to the contributions

Whether business ownership, alimony or child support, and visitation are contentious issues, all you need is to speak with a divorce lawyer in New York to protect your rights. It doesn’t matter even if you and your spouse agree on most of the important issues – if you own a business together that is making more than even $200 a month, you need a legal representative. If you do not have adequate legal knowledge (and who does?), you will not know how the decisions will impact you legally in the long run. Therefore at the very outset of a divorce make sure to reach out to a lawyer experienced in all aspects of family law.

Do not allow your business to crumble even if your marriage is.

It does not matter which route you want to take of the different routes discussed above, if your marriage is on the rocks and there is a business involved, you need to go right here: Divorce.USAttorneys.com. Your business may consume a lot of your time to run but this website will allow you to find a divorce lawyer in a short time span.

Any questions? Contact us.