Marriage can have a significant impact on the ownership and classification of a business. In the event of a divorce, it is important to have a clear understanding of the business’s status as either community or separate property.
Classifying a Business as Community or Separate Property
When determining the classification of a business, factors such as the time of acquisition, manner of acquisition, and separation of business and personal finances should be considered. A prenuptial or postnuptial agreement can also be used to declare the business as separate property and establish ownership of income and profits earned during the marriage.
Protecting Your Business During a Divorce
Having a plan in place can help protect your business during a divorce. This may involve obtaining a neutral business valuation, creating a “buy-sell” agreement, or negotiating for fair value of the business with your spouse.
In conclusion, dividing a business in a divorce can be a complex process. By understanding the classification of the business as community or separate property and having a plan in place, you can help protect your business and ensure a fair resolution.
Contact The Blacknall Firm
If you are facing a family law issue and need representation, contact the Blacknall Firm today. Our team of experienced family law attorneys is dedicated to helping our clients achieve the best possible outcome in their cases. Let us put our skills and knowledge to work for you.
