Divorce tips for business owners can come in handy when you are a business owner undergoing a divorce. Divorce will never be an easy process. There would be conflict from any angle you look from. Divorce is also life-changing. It can literally change your life the moment the Final Order is released by the court. The problem is, there are not a lot of helpful information available. If you are a business owner, you could be worrying about how the divorce can impact your business. It can also be worrisome to think about how your business can impact your divorce proceedings. This is why we came up with these divorce tips for business owners to help you out.
When a Business Owner Goes Through a Divorce
Most business owners have worked all their life to make their business prosper. Since it’s something you’ve dedicated most of your life to, it’s understandable for you to be worried that the divorce might cause all that you’ve worked hard for to crumble down. Divorce means disaster for your family. You wouldn’t want it to unless chaos for your business as well. When all information you have are hearsay, you can’t really rely on it. It’s better to be informed of divorce tips for business owners from an experienced family law attorney.
Risks For Your Business
One fact that you should never forget is that your business could be subject to property division. It is likely that your business is part of your community estate. Fortunately, it’s possible that the business itself won’t be sharply divided, but chances are, you will share ownership with your spouse. Of course, a key point here is whether or not your business is classified as community property. If during the divorce trial, the judge decides that your business is community property, it will certainly be susceptible to property division. There are some things that are more important when viewed from your business’ viewpoint.
One of the most important divorce tips for business owners that we have is this: Try to settle everything through a negotiation as much as possible. If not, you will have no choice but to bring your case to court. When that happens, the judge will decide everything, including the classification of your property and business. You will have no say in the matter.
Your Business and Property Division
If you really can’t settle your divorce outside of court, the next best thing you can do is to produce strong evidence that your business is your separate property. This is also one of the most crucial divorce tips for business owners. If you fail to do this, the court will assume that your business is also part of your community property. On the other hand, if you are able to establish that your business is separate property, this can also affect how your community property is going to be divided. The judge will divide the community property in a fair manner, but this doesn’t necessarily mean that it’s going to be an equal division. Instead, the judge will consider the separate properties in determining how the community property is to be divided. In Texas, a judge can provide a disproportionate division of community if your estate is significantly larger than that of your spouse. The judge sometimes do this to compensate with the relatively smaller estate.
Appraising the Value of Your Business
Another of the most pertinent divorce tips for business owners that we have is using a qualified and established appraiser for your business. Determining the value of your business is an important matter for your divorce. Entrusting it to someone who does not have enough experience and is not trustworthy enough one of the worst moves you can do. In determining the value of your business, the appraiser will use your financial documents such as tax forms and statements.
It is also likely that you and your spouse can have a disagreement on the appraiser that you will choose. You will have to communicate properly with your spouse regarding this issue. You will also have to pay the appraiser, then wait until he or she will release the determination of the value of your business. It will be a long and tiresome process. Review the credentials of your business appraiser as much as possible. It would also help if you employ the services of a trusted and experienced family law attorney to protect your assets better. If you are already working with an attorney, he or she can also help you in finding the right appraiser for your business.