Astute Murfreesboro Divorce Lawyers Safeguard Your Business Interests in Divorce
Protecting your business interests is our priority
Together, you and your partner have built a successful business. It has provided you with steady income, and your business assets have grown. Now that you are contemplating divorce, you wonder what will happen to your business. Does divorce mean that your business ends?
Resolving business ownership during a divorce is difficult and can be emotional. Each business is unique and has different problems and complications. With help from our Murfreesboro divorce lawyers you can determine the best options for safeguarding your business interests. The end of your marriage does not have to mean the termination of your business.
How to resolve business ownership in a divorce
When a couple who co-owns a business decide to divorce, the first issue will be how to separate their ownership of the company. In a divorce most business ownership problems are resolved in one of three ways.
- Sell the business and divide the proceeds: Many divorcing couples find that it is too difficult to maintain a business relationship when ending a personal one. For them, the best solution is to sell the business and sever all financial ties.
- Co-ownership: Some couples find it easy to work together after a break-up and decide to keep “business as usual.” In order to successfully continue to co-own the business, these couples must be willing to remove the personal from their work environment.
- Buy out the other’s interest: One spouse may want to continue with the business while the other wants out. In this case, one spouse will buy out the other’s interest.
Do not let the divorce process push you into making a quick decision about what to do with your share of the business. Initially emotion may make one option seem more attractive than another, but a change in time and perspective may lead you to a different conclusion. One of our savvy Murfreesboro divorce lawyers can aid you in finding the best option for you.
Valuing the business is key
If you decide to sell the business or buy out your former partner’s interest, you will need to value the business. Partners frequently disagree about the worth of a co-owned business. When this occurs, the court hires appraisers to determine its value. Spouses may also testify about business value. Sometimes each spouse hires his or her own appraiser. Problems can arise when appraisers disagree on value. They usually use one of the following three methods to value a business:
- The market approach: the value of the business is based on a comparison between it and a similar business that has recently sold
- The income approach: the value of the business is based on an examination of the actual profits and cash flow of the business
- The asset approach: the value of the business is based on an examination of the values of the assets and liability of the business.
Sometimes valuations differ because of different approaches. If you feel your business has been undervalued, it is important to recognize which approach the appraiser you used, so you can identify errors for the court. Ultimately the court will weigh the evidence and determine what the property is worth.
Our Murfreesboro divorce attorneys have the knowledge and experience to carefully examine a number of documents – we look at the accounting, balance sheets, income stream and goodwill and make sure your business has not been undervalued. Trust us to protect your business interests.
Murfreesboro divorce lawyers recognize the value of your business to you
Separating the actual value of a business from the emotional trauma of a divorce can be complicated. It is almost as though you are going through two separate divorces. The divorce attorneys at Kidwell, South, Beasley & Haley understand how important your business is to you. Contact one of our experienced Murfreesboro divorce attorneys at 615-893-1331 for assistance in protecting the business you have so carefully built.