How Divorce Affects Small-Business Owners
If you own a small business, you’ve likely worked hard and sacrificed valuable time, money and energy to build your business. You probably never expected that you would divorce, but now you and your spouse have decided to split up. Now you have numerous questions and concerns about how the divorce will affect your livelihood.
Two Rivers Law P.A. assists small-business owners in Minnesota going through divorce. For over 10 years, our divorce and business lawyer David Cox has applied his knowledge and experience as an invaluable advocate for entrepreneurs in the middle of a divorce.
You can reach our office by calling 763.575.7911.
Factors For Small-Business Owners To Consider
When small-business owners divorce, many factors must be considered to determine what will happen to the business ownership after the divorce, including:
- When was the business formed? If the business was formed before the marriage, it may not be considered marital property. Similarly, other assets are determined in this way too. But even if you formed the business before entering into the marriage, it could still be considered a marital asset if your spouse was involved in its operation.
- What is your spouse’s marital interest? Your spouse’s marital interest can be determined based on several things, including your spouse’s role in the business, the amount of time he or she contributed to the business operations.
- Was documentation in place that established the ownership interests? Small-business owners may avoid these problems by having a clear shareholder agreement in place. The easiest way to avoid problems with ownership is to establish clear definitions in a shareholder agreement during initial business formation.
Those are just some of the factors for how divorce affects small-business owners. For help with your specific business situation and the process of equitable division of assets, speak with an experienced divorce attorney.
Consult With An Experienced Adviser
Two Rivers Law P.A. in Otsego can assist you in protecting your business assets during divorce. Our business law and divorce lawyer David Cox has worked with business owners at all stages of their business, including formation, disputes and litigation and valuation in divorce proceeding. Call him at 763.575.7911 to arrange a free consultation about your small business issues. You can also email the firm to set up this appointment. Mr. Cox regularly works with clients locally in Otsego, in Elk River and throughout the northwest suburbs.