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Will a business be affected by divorce?

On Behalf of | Apr 8, 2022 | Divorce |

When a marriage comes to an end, one of the most difficult things to experience is watching a life built by two fall apart. In a high asset divorce, a couple may see many valuable things included as part of the marital property, such as the family home, cars and even furniture. Since Virginia is an equitable distribution state, the division of assets can vary greatly from a 50/50 split, which can make things particularly distressing if one of the assets is a business. 

There are options 

The ideal scenario would be if spouses could agree on decisions concerning a business without having the court intervene. A family court judge will still approve or reject any divorce settlement that is reached. There are several options that couples can consider when attempting to find the most fair and equitable means of dividing business interests in a divorce, including the following: 

  • Giving one spouse other assets in exchange for his or her business interests   
  • One spouse could sell part of his or her stake in the business to finance a fair trade with the other spouse   
  • One spouse could pay the other spouse’s installments over time for his or her share of the business   
  • Both spouses could continue to own the business together with a sound contract between them   
  • Selling the business and dividing the proceeds 

According to business professionals, liquidating a business is typically not the best route to take, especially if it is a main income source. It is also likely the true value of the business would not be realized in its sale. No matter which option a couple is leaning toward, the business and its assets must be valuated, which is often a complex process. 

A high asset divorce involving a business can present many complexities and challenges. It can also substantially impact the long-term future of the business involved. An experienced attorney can carefully analyze all intricacies involved to help determine the best approach toward achieving a fair settlement and protecting one’s long-term business interests.