The future of a family business which had its start in Kentucky requires careful planning when going through with a divorce. At Lisa L. Johnson, Attorney at Law, our firm understands how your spouse and children may have all contributed over the years to grow your business and helped to keep it running. A divorce not only affects your living arrangements, but also how your family-owned business is divided and operated, which is a challenging process according to Forbes magazine.
Depending on the percentage you and your spouse own in a closely-held family business, you may need to obtain a professional appraisal. The overall value of a business is usually determined by the current market conditions at the time of your divorce. A seasonal business may have a higher value during certain times of the year, which might affect its division in the divorce proceedings.
A couple may need to decide upon who will take complete ownership of the business. If one spouse has substantially contributed to the company’s growth and management, he or she may need to buy out the other spouse. This is similar to a traditional business arrangement in which one of two business partners decides to leave and the other buys out their ownership.
If the business income depends upon the particular skills of both spouses, you may require a restructuring. A closely-held family business might also require reorganizing as a way to establish each spouse’s ownership in a manner in which they could both share in its profit and losses. Setting up a new work schedule might enable both spouses to work at the company without interfering with each other.
Couples may also decide that selling their business altogether and splitting any profits is best for dissolving the marriage. Our page on complex property division provides more information on what you might expect when splitting up your business during a divorce.