If you are getting a divorce, hire a divorce attorney to help you handle the case. This is an incredibly difficult and sensitive time. Trying to handle it on your own is unwise since emotion can complicate things, and your reasoning may not be as sharp as normal. This is perfectly understandable since getting a divorce can be as traumatic as losing a family member. Working with an expert lawyer can make the process easier so that you can focus on feeling better and taking care of your family.
There are many aspects to a divorce. Not only are you changing your marital status but assets, and liabilities must be divided. This includes everything from where you live to the cars that you drive and the family pet. Every single item you own needs to be given to you or to your spouse, which can be cumbersome at best. If you own a business, this process becomes much more complicated.
Dividing a business is not easy and normally not practical. For example, you cannot take an operating company and say that one spouse gets the sales force and their revenue while the other gets the service staff and the revenue they generate. A business doesn’t work like that so any division of it needs to be financial. The question then becomes, what is your business worth? A divorce attorney can help you to find out.
Since the business is a living and changing entity, a business valuation is typically done to determine how much it is worth. This should be done by an expert such as a CPA or valuation specialist. There are many ways to evaluate a company that may include looking at tax returns to determine net income along with placing a value on intangibles like customer relationships and tangible items like equipment. This is far more complicated that simply looking at your tax returns alone, so working with an expert is important.
Once the business value has been determined, the other party needs to agree to the value or dispute it by obtaining their own business valuation. After each party has agreed to a set value, it is time to negotiate how much of the business each person should get and how the other person needs to pay them for it. When hard assets like real estate are involved this can become easier by getting a loan to buy the other party out. Otherwise, monthly payments are often arranged just like they would be if a partner buyout was being completed. Working with an expert attorney will ensure that your interests are protected during this process.
As a divorce attorney, we often find that dividing up a business can be a sensitive matter. This is because most people invest more than time in a business. It can become their “baby” so to speak. Before you start the process call Keen & Genochio Attorneys at Law at (619) 232-2217 to schedule your consultation.