A lot of couples make the choice to open their own business together, rather than become an employee for another company. This decision can be financially advantageous, can provide job stability, and can also give you control over your daily schedule. While it sounds nice to be your own boss, there are drawbacks though, and one of those is what happens to a family owned business when the owners get divorced. In some instance the company doors remain open, but the ownership is questionable. To make sure that you are treated fairly and receive what is rightfully yours, call an experienced family law attorney today for help.
The ways a divorce can impact your family business include the following:
- The ownership or partnership structure may need to be changed. What this means is that if you and your spouse part ways, you may also need to dissolve your partnership. Some couples are able to continue working together, as equal partners, while others decide to allow one spouse to take over the business. If only one spouse remains in control, the other may be entitled to their proportionate share of the value of the company.
- Company policies and bylaws may need to be changed, to reflect a new corporate structure. Even with ex-spouses continue to run a business together; it is a good idea to revamp corporate documents.
- Valuation of the business will need to be done, in order to figure out a fair distribution of the company.
Questions nearly always arise when a family owned business is part of the divorce mix as to how and when the company was acquired or started. This information is important because it is critical to properly classify the business when taking stock of a couple’s assets. Not only do you have to take into account the nature of the asset, but also the nature of any increase in value of the company. Arizona is a community property state, and when a pair splits up their property is considered equally owned if it was acquired during the marriage. This makes figuring out what to do with a family owned company legally complex. We have experience with these types of issues, and can help you figure out what is best for you.
For more information about divorce, call us today. Let us put our experience to work for you. Call The Sampair Group in Phoenix and the West Valley today to schedule your appointment.