The dissolution of a marriage is inherently intricate, however, when both spouses are joint proprietors of a business, the asset distribution becomes even more complicated. In such situations, it’s important not only to secure a proficient divorce attorney but one who specializes in family law. This type of lawyer can guide both parties toward an equitable division of the enterprise.
For a deeper understanding of your choices concerning business asset division during divorce, consult the family law specialists at Xander Law in Miami, Florida.
Division Of Business Assets In Divorce Proceedings
In divorce proceedings involving business assets, it’s imperative to be well-informed about the legal complexities and potential routes to consider. Here’s an overview of the three primary methods for handling the dissolution of a business during a divorce:
1) Buying Out
One option is for one spouse to acquire the other’s stake in the business, therefore retaining sole ownership. This option entails one spouse purchasing the other’s interest, often through a pre-determined lump-sum payment. The funding for this arrangement must be available and occasionally, it might be structured as a loan.
This option ensures that the business remains under the current management.
2) Retaining Joint Ownership
If financial constraints make a buyout challenging, couples who maintain a constructive working relationship might contemplate joint business ownership post-divorce. While many divorced individuals can navigate this arrangement, it’s not universally advisable.
The success of this approach relies heavily on maintaining a robust professional relationship despite the dissolution of a personal one. Collaborative divorces often feature this strategy, in contrast to contested divorces full with disagreements.
3) Business Liquidation or Sale
For some couples, the most viable resolution might be liquidating or selling the business and dividing the proceeds. This is similar to the process of selling jointly-owned real estate.
Given the dedication required to establish and operate a business, this decision isn’t taken lightly. However, if a business evaluation determines the enterprise isn’t viable, it could be challenging to find a potential buyer.
Additionally, if there’s a disagreement on the business’s valuation, a sale may not be feasible. Legal counsel is crucial in navigating these intricate considerations.
Miami Family Law Attorneys
Owning a business and facing divorce simultaneously can be overwhelming. Therefore, it’s important to seek competent legal advice tailored to your circumstances.
Divorce can be a difficult process, especially when there’s a business involved, but our dedicated team at Xander Law is committed to facilitating a seamless transition.
Contact us at 305-767-2001 to schedule a consultation with one of our experienced attorneys dedicated to heling you.