How Will Divorce Impact Your Business Or Professional Life?
Whether you run a company or own your own business, divorce will likely cause your personal and professional lives to intersect, with significant financial ramifications. But working with an experienced family law attorney is an important safeguard against jeopardizing your career or business prospects in the divorce.
At Thomas M. Shanley, P.C., we have 40 years of experience helping clients navigate business interests in high-asset divorce. We know we can help you, too.
Is Your Business Considered A Marital Asset?
You have been operating your business for years without the help of your spouse. When it comes to time to divorce, it seems logical that the business would be considered separate property. Unfortunately, that’s probably not the case.
You have likely used personal funds to pay for business expenses at some point, and the profits from your business likely go back into your pocket. Assuming you share finances with your spouse, that typically means your spouse has an ownership interest in the business. The business would be considered marital property, and therefore, subject to division.
What happens next? You likely don’t want your ex-spouse as a business partner. Nor do you want your ex-spouse to sell his or her interest to someone you don’t know or who doesn’t share your vision for the business. Does this mean you’ll have to close, liquidate assets and split up the funds?
Thankfully, it is usually possible to reach an amicable agreement in these types of cases. With the help of our attorneys, you may be able to negotiate with your spouse and trade other assets worth the equivalent of your spouse’s financial stake in the business.
What Is The Business Worth?
Accurately valuing a business can be complex even without the pressure of a divorce. Do you merely add up the value of the assets? Do you track and calculate income over time? Do you study sales of similar businesses in the same industry (publicly traded or closely held)?
There are numerous approaches you can take, and the specific approach will likely depend on the kind of business you operate, its size and other factors. If necessary, our attorneys will work with financial professionals to ensure that your business is accurately valued.
What Executives Need To Consider In Divorce
If you are the leader or upper management of a company you don’t also own, your divorce could nonetheless have an impact on your employee perks and benefits. Your spouse may be entitled to a portion of your pension or other retirement accounts. You may have stock options that need to be considered. You may have company-sponsored health insurance that your spouse can no longer be on after the divorce. All of these issues will need to be addressed in the divorce because all could play a role in the property division.
Have Questions? Contact Us For Answers.
Located in Greenwich, Thomas M. Shanley, P.C., serves clients in the surrounding areas of Connecticut. To arrange your initial consultation, call us at 203-542-9391 or fill out our online contact form.