family businesses and divorce
What Happens to a Family Business in Divorce?
Warwick, Rhode Island, Divorce
A business begun or acquired during a marriage (other than through an inheritance) may be a marital asset under Rhode Island family law. This could be the case even if only one spouse is active in operating the business.
If the division of marital assets in your divorce will include a closely held family-owned business, it's wise to work with a divorce attorney who has experience with the division of complex assets. The interests of the two spouses may be at odds with each other. Knowledgeable legal counsel can be vital in protecting everyone's interest – and keeping the business secure.
I'm William Balkun , a Cranston, Rhode Island divorce lawyer with 30 years of experience handling complex property division cases, working with accountants, business valuators and business consultants. When you need a lawyer who can build a strong case, contact my office.
What Will Happen to the Business?
If the closely held family business is a shared asset, both parties will be entitled to a percentage of the value of the business. The biggest concern is likely to be how the division of this marital asset will impact the business. The answer is: that depends.
If neither party wishes to continue running the business, this is the time to sell it so the profits can be divided, or to dissolve the business and divide the debt. The task ahead, then, is to get a proper valuation of the business in advance of a sale. I can help you locate an experienced business valuator.
If one party wishes to continue operating the business but the other party wants his or her share of the value, the business valuation will form the basis of a buy-out agreement. The exact nature of that buy-out can be negotiated.
Of course, it may be that both parties wish to continue operating the business. Negotiations can then focus on ways the parties can protect their separate financial interests in the ongoing operation. You may even choose to structure an agreement that discusses how you will work together day-to-day.
Talk to an Experienced Rhode Island Divorce Attorney About Valuing a Family Business
You can feel confident in my ability to handle the negotiations or litigation of your case. Contact The Law Office of William J. Balkun online or call 401-463-5106.
