When you married your partner, you never dreamed a day would come when that would end. It’s the same reason each of you decided to open a business together. So, what happens next? How can you divorce your spouse and without losing any interest in a business that the two of you, together, started and grew?
There are a number of questions that must be answered to determine who gets what when business partners were married and are now going through the divorce process. Is the business owned by both or just one with the other working at the establishment? Was the business started during the marriage or did one partner have the business in place before the union?
“If the business is likely community property, then the next step is to place a value on the business” an article in D Magazine points out. “This is where most of the complexities arise in dealing with a business in a divorce.”
“Once all the community property assets, including a business entity, have been identified and valued, the last step in the divorce is the actual division of the assets between the spouses. With a business, generally, it can only be awarded to the spouse who is listed as the owner. The other spouse should be awarded other assets to account for the value of the business in the overall division of the assets.”
Should you and your now former spouse each have rightful ownership of the business and wish to remain business partners following the divorce, it’s in the best interest of both parties to form an operating agreement. This agreement will lay out roles and responsibilities, in writing, taking out any and all guesswork about each party’s responsibilities in the business.
At Southern Oaks Law Firm, Lafayette family law attorney Taylor Fontenot believes his role is to protect your rights and interests while simultaneously working with everyone involved in order to minimize collateral damage and resolve disputes timely and efficiently.