Divorce for Business Owners
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Divorce Counsel for Durham Business Owners
Building a business can take years of dedication and hard work. If you're going through a divorce in Durham, NC, you may be worried about how it could impact your company’s growth and profitability. Gantt Family Law helps business owners like you feel more secure about their future and works to protect and distribute business assets fairly.
What Equitable Distribution Laws Can Mean for Business Owners in Durham
North Carolina is an equitable distribution state. If you and your spouse can’t agree on dividing assets, a judge in Durham or the greater Durham County area will determine what’s reasonable and fair. If your business began before marriage, it may be considered separate property and not subject to division. However, if it started during the marriage or significantly appreciated in value during your marriage, it could be classified as marital property and divided.
Most judges do not have any experience as business owners. Their decisions might not fully reflect the realities entrepreneurs face. This is why experienced legal representation is key. Our Durham divorce attorneys understand North Carolina property division laws and the complexities of operating a business. We help protect both your business’s present value and its future growth potential.
How Can I Protect My Business Amid Divorce?
If you do not have a prenuptial or postnuptial agreement, there are still ways you can protect your business assets. Here are a few to consider:
- Update business bylaws: Create a clause that designates sole ownership in the event of divorce.
- Get a business valuation: Knowing your business’s worth helps in creating a fair division plan.
- Sell the business: If your spouse has no claim, selling could make it easier to split the proceeds instead of dealing with complex assets.
Our Durham divorce lawyers can help you evaluate your options and create a strategy tailored to your situation. Contact us today through our contact page to set up an initial consultation.
How Do I Divide Business Assets in a Divorce?
There are a few options available to divide business assets during divorce:
- Sell the business: When both partners have a claim or jointly own the business, the easiest solution is usually to sell it and share the profits.
- Compensated with alternative assets: One partner might relinquish rights to additional marital assets (such as a house or retirement savings) in return for total ownership of the enterprise.
- Maintain a partnership in business: Certain couples opt to continue managing the business together after their divorce. In this situation, formal contracts are crucial for clarifying roles and ownership shares
Even if your spouse isn’t a co-owner, you could still be entitled to a share of the increased value accrued during the marriage. For example, if the business was valued at $200,000 at marriage and is now worth $1.5 million, the appreciation might be considered marital property.
How Is a Business Valued in Divorce?
There are three primary methods used to value a business in Durham, NC divorce cases:
- Asset-based valuation: This approach subtracts liabilities from assets (real estate, inventory, equipment) to determine value.
- Market value: Looks at the sale price of comparable businesses in the local or regional market.
- Income-based valuation: Projects the company’s income and growth potential to determine its present-day worth.
Our experienced divorce attorney can help determine the most appropriate valuation method for your business.
Scheule a Consultation with Gantt Family Law in Durham
At Gantt Family Law we assist you in safeguarding your business amidst divorce. With over twenty years of experience and expertise in family, business, and tax law, our lawyers in Durham, NC possess the understanding and information you require. Don’t leave your future to chance. Call us today to schedule your consultation with a Durham divorce lawyer who understands the value of your hard work.
