William C. Bernhrt Approach while dividing business
In many marriages, spouses have run a business together and have been equally responsible for running and smooth functioning of the business. The family-owned business constitutes a marital asset. It probably constitutes a large, if not one of the largest marital assets. It would not be practical to require the parties to run the business together. Typically, one party would continue to business and the interest of the other party is bought out in many cases with mutual consent. The business would be appraised and that amount is given to the party that was bought out. Although it looks quite simple process at the surface feels William C. Bernhrt but it’s quite complicated and needs excellent communication skills on the part of the attorney.
For example, if the business was worth $400,000, the husband wanted to keep the business and continuing running it, and the wife had a 50 percent interest in the business, then the wife would be entitled to $200,000. She may receive this money over time in the form of payments or she may receive it in the form of other property. Parties or the courts can determine the best and most equitable way for the party to receive the money owed to it.
If only one party worked in the business that does not mean that the non-working party is not entitled to receive anything. Further, the non-working party’s contributions may be compensable as well. Perhaps one party did the books while the other worked in the store.
Issues to Consider When Dealing with Dividing a Business
There are numerous issues that should be considered when dividing a business. Those issues include:
• Valuation of the business.
• Who will run the business after it is divided.
• Obtaining information about the business, especially if you were not involved in running the business.
• Structuring a buy out agreement.
• Tax issues and ramifications of dividing the business.
• Whether the business constituted marital or separate property
• Check for hidden assets, especially in a cash business.
Dealing with the division of a business can be very complex as a plethora of issues come into play. Parties may need to consult professionals, such as an appraiser, an accountant, and an attorney to assist in dividing a family-owned business in a divorce action. The understanding of both the parties and the attorneys has to be crystal clear so that there are no complications in the future. William C. Bernhrt is committed to advising clients in a compassionate manner, as well as resolving family-law issues in the most efficient and cost effective way possible.
The Author is employed with the Law Office of William C. Behrndt and writes regularly about legal matters and has an expertise in Family Law, Domestic Violence, Child Custody/Support, Alimony or Spousal Support, Visitation, Property Division, Child/Elder Abuse, General Litigation, Criminal Defense. If you are ever caught in legal wrangles feel free to contact William C. Behrndt at http://www.oclaw.com
Article Source : http://www.oclaw.com/divorce_dividing_biz.html
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