Most divorce proceedings are tough for all those involved. However, some believe that a high asset divorce in Kentucky is an even bigger challenge. Unlike other divorces in which the primary concern may be to reach peaceful settlement agreements, the stakes are so much higher when a successful business is involved. When both spouses were instrumental in the success of the business, it will likely be seen as a joint asset regardless of who is the legal owner. Furthermore, the growth of business assets during the marriage will also be divisible.
While high net worth divorces are typically best navigated with experienced legal guidance, a professional business valuation will probably be the first essential step to take. If such an assessment is done by an accredited firm, a fair division of business assets may be possible. Aspects that will form part of such a valuation include all the company assets, its total income and all its liabilities.
If one spouse wants to take steps to protect the business, removing the other spouse from the business operations might be necessary. His or her continued contribution to the business will increase chances of a claim for a significant share of the business assets. If it is required to buy out the other spouse, a solution might include using marital assets in exchange. These may include separately owned stocks, real estate, retirement plans and cash.
In some cases, the only solution is to dissolve the business, and some business owners choose to sell minority shares in the company to avoid such a situation. This may help to raise capital to finance the purchase of the other spouse’s share. However, help is available, and nobody in Kentucky needs to navigate a high asset divorce without the support and guidance of an experienced divorce attorney.
Source: investopedia.com, “How can I protect my business from my spouse during a high net worth divorce?“, Melissa Horton, Accessed on Nov. 24, 2017