When it comes to divorce and your thriving business, the word “half”
is terrifying. Will your ex get half of everything? Will they get half
of your savings? Will they get half of your assets? Will they get half
of your business? And if so, how can you possibly manage that without
losing everything? For business owners, there’s one question that
is more terrifying than all the rest, “Is my ex entitled to half
of my business if we
divorce?” In fact, it’s so terrifying for many that they avoid divorce
because of the issue.
Business owners living in fear of losing “half” due to divorce
worry that their business won’t be able to survive with half of
its value being pulled in another direction. They worry that they can’t
afford to pay that high of a price to their spouse due to a divorce. Many
find themselves attempting to do something foolish in order to avoid losing
their business like cooking the books or tanking the business temporarily
in order to make it appear less profitable or less valuable.
If you find yourself in panic mode about losing half of your business –
STOP! Take a deep breath and remind yourself that you don’t have
any real answers yet because you haven’t yet been in touch with
an Arizona divorce attorney who can provide you with the real information
that you need. You aren’t the first business owner to find yourself
in this fearful situation. And you won’t be the last. And, regardless
of all the urban myths you’ve heard, most don’t lose their
business when they get divorced. Don't do anything foolish. Retain
an experienced Arizona divorce lawyer.
If you are getting divorced, your business is an asset and should be characterized
and valued. This will play a big part in the determination of what your
ex is entitled to from your business. If your business predates the marriage,
it will probably have a separate property part to it. Discuss this issue
with your divorce attorney and have the following info on hand. The following
information will be some of the factors in determining a separate versus
community part of a business predating marriage:
When was the business started?
How long before the marriage was the business started?
What were the assets/profitability of the business prior to the marriage?
What was the value of the business at the time of the marriage?
Has the business become more valuable or less valuable during the time
of the marriage?
How much of the change in value resulted from community efforts versus
If you have more questions regarding your business and how getting divorced
will affect your ability to sustain its functioning on a day-to-day basis,
contact Arizona Family Law Attorneys.