Getting divorced can be tough, but it can also be one of the best decisions an individual can make. However, to ensure that a divorce goes as smoothly as possible and an individual reaches as favorable of an outcome as is possible under the circumstances, it is critical to know what issues one may face during the dissolution process. Though child custody, child support and alimony are often hotly contested issues, property division also often rears its ugly head into divorce proceedings. This can be particularly true when a business is at play.
So what happens to a business in a divorce? It really depends on the specific circumstances. First, one has to determine whether the business was created before or after the marriage. If it was created during the marriage, then the business must go through a valuation process conducted by an expert. Once a value is given to the business, then division negotiations can start. A valuation will still need to be conducted even if the business was started prior to the marriage, since any increase in the value of the business over the course of the marriage may be subject to division.
There are many issues that can come into play when handling a business in divorce. Personal and enterprise goodwill may become an issue for consideration, which could impact the value of the business and, therefore, the amount that can be divided amongst the divorcing parties.
With a lot to consider in these matters, it is often beneficial to have the experience, skill and knowledge of an Ohio family attorney who can provide competent advice. Armed with information about valuation and property division and having an ally throughout the negotiation process may allow an individual to make the dissolution decisions that are right for him or her. Hopefully then the divorced party can start his or her new life off on the right foot.
Source: Credit.com, "What Happens to My Business in a Divorce?" Rebecca Zung, Aug. 7, 2015