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Splitting a business during a divorce

On Behalf of | Apr 26, 2018 | Property Division |

As anyone who’s been divorced in Missouri will testify, the entire process can be very emotionally draining for all concerned parties. Should there be a valuable asset such as a business that needs to be split, things can get even worse, especially if both individuals were involved in growing the business. According to the amount of effort and money invested into the business, the whole process can become quite personal to either party, eradicating any sense of objectivity they might need to negotiate fairly. Moreover, the possibility of one individual trying to defraud the other person by devaluing the company on the books or hiding debts can make matters tense.

Consequently, it is necessary to keep a level head and approach the process of splitting a business methodically, starting with getting an accurate valuation of the company. This will ensure that everybody gets a fair deal, and the sooner it happens, the faster the business can return to serving its customers. Usually, the fastest way to get a fair appraisal is to hire a professional who can assess the value of the assets, including the equipment and the real estate.

Once the business’ value is determined, the spouses can decide whether one party wants to sell it to the other, keep it or split it with their former partners. Naturally, there are several variables that will affect this decision, including in whose name the business is, in which state the business resides and whether the business was started by one party prior to the marriage or both parties built the company together.

Divorcing spouses may wish to reach out to experienced lawyers when contemplating how to divide their property. Lawyers may be able to help with the appraisal phase by doing it themselves or recommending a professional for the job.

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