When a couple is going through a divorce, it is not uncommon for many complicated issues to arise. Child custody and property division are just a few of the challenges that can make a divorce more contentious, leading to lengthy and expensive court battles. Often, this can take a serious emotional toll on all parties, leading to people making bad decisions just to finalize the divorce.
West Virginia, like many other states, calls for an equitable division of marital property as part of a divorce. This means that whatever property division that is ultimately determined must be fair to both parties. This does not necessarily mean that there will be a 50-50 split.
For couples that own businesses, property division will be one of the more important issues to address. It will generally be in both parties’ interests to keep the business operational, especially if it is successful. However, this can make it more challenging to divide equitably between the soon to be ex-spouses.
One of the first things that will need to happen is for the business to be evaluated to determine how much it is worth. This will often require financial professionals to examine the business’s books and assets.
It is crucial to have experienced assistance during this time period, as some may try to hide or conceal the true worth of the business. Those with experience in this area will know what to look for, and can spot when something is missing. Parties will also want to discuss how to handle the confidential information that is part of the business, such as customer lists, so that this does not fall into the wrong hands.
Once it has been determined what the business is worth, the next step will be to divide the business between the parties. It might be necessary to consider how much each spouse contributed to the business, in terms of work, intellectual property or financial assistance that was provided.
Also, the parties will need to consider how they operate the business post-divorce. Do they want the business to remain open? If so, how many other partners are being impacted by the divorce? It may be necessary to buy out the divorcing partner or sell the business to complete the property division process, which can make the entire situation that much more complicated.
Parties may make agreements at the time the business is formed that would explain how any potential change in ownership issues are to be handled. Additionally, spouses may enter into a premarital agreement that could protect certain assets in the event of a divorce. These agreements have specific requirements, and if these are not followed, the agreement may be invalidated.
These are just a few of the issues that can arise when business ownership is part of property division proceedings. If you are considering a divorce, speak to an experienced family law attorney in your area to understand your options. While it may be tempting to try to resolve the matter as quickly as possible, any orders entered on property division can be impossible to reverse. It is important to protect your interests during this challenging time.
Article provided by Pritt & Pritt, PLLC
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