Protecting Your Business During Divorce

At Lasiter & Jackson, our attorneys will astutely advise you in all aspects of property division, including business valuation for your family business in Arizona. We understand your need to contain legal costs while looking out for your present and future best interests. At the same time, we let clients know when it may be necessary to hire a CPA or forensic accountant to arrive at a realistic business valuation.

Understanding Your Options When It Comes To Your Business

The divorce process is complex on its own. It is vital to understand the additional issues that will need to be addressed when you have a business. We know how much is at stake during divorce negotiations, which is why we provide zealous representation to protect your best interests.

Divorce can affect your business in many ways. We will explain the different ways your business may be divided, which can include:

  • Offset: one spouse keeps everything and the other receives some other marital assets in exchange.
  • Buyout option: one spouse will buy out the other's interest in a business based on business valuation results.
  • Both spouses, although they will be divorced, will retain ownership in a business and negotiate their respective interests as business partners.
  • Other creative solutions may be devised. Goals of divorcing spouses who own businesses may include preserving or profiting from business assets, limiting tax penalties and leaving both spouses in as strong a financial position as possible after the divorce.

The Importance Of Your Business Valuation

A business valuation is necessary to obtain the proper value of your business before we negotiate your divorce settlement. Your business valuation should take into account factors such as the value of actual physical assets, appreciation or depreciation of equipment, cash flow, customer good will and overhead costs.

Depending on other property division aspects of your divorce, it may or may not be appropriate to divide the business 50-50. There may be additional factors to consider such as the following:

  • Contributions that each of you made to the business before and during the marriage
  • Interests of business partners outside the marriage
  • Ownership of some or all of the business assets by one spouse before the marriage

Protecting Your Best Interests

We provide understanding and compassion for the delicate issues associated with divorce and family law.

We are committed to helping our clients who own businesses achieve favorable outcomes when dividing a business during a divorce. Let us start protecting your best interests. Call 602-234-5900 or send us an email to schedule a consultation.