Filing for divorce while co-owning a business with your spouse can be quite daunting. You may find yourself worrying about the possibility of losing your shares or letting go of your business.
As you move forward with your divorce proceedings, it is crucial to gain a deeper understanding of your business division process and tailor strategies that can help safeguard your rights to fair distribution of assets.
How will the court divide our joint business?
Under New Hampshire’s divorce law, all marital property owned by either spouse is divided equitably, but not necessarily equally. This means that if you and your spouse built or bought a business together during your marriage, the court will generally view it as a marital asset and divide it in a manner that is just and fair.
On the other hand, if one spouse owned a business prior to getting married and managed it separately without their spouse’s help, the business will remain as a non-marital property and can stay as such.
How can financial appraisers help?
To divide a joint business fairly, the court will need to establish the value of the business. In this process, financial experts are called in by the divorcing couple to help determine the value of their business.
Depending on the type and size of your business, the appraisers may include tax professionals, business valuation analysts and Certified Public Accountants (CPAs). By seeking their expertise, your joint business can be divided equitably based on its real market value.
What happens after the appraisal process?
After your business property’s appraisal, you and your spouse can negotiate on the terms and choose which business division method to implement:
- Co-ownership: You can keep your business property and continue to run it together as co-owners.
- Buyout: You or your spouse will purchase the other’s business shares and become a sole owner of your business property.
- Sale of business: You and your spouse will sell your business property and divide the profits 50/50.
Your life’s next chapter awaits
Breaking up with your spouse does not mean you have to say goodbye to your cherished business as well. By gaining a deeper insight into your property division process, you can analyze your options better and navigate your divorce proceedings with confidence.
