High asset divorces can present more challenges and require a greater level of due diligence before the proceedings than average for those here in Missouri. This is because there is typically much more at stake financially since these cases involve at least $1 million in total marital property. An important consideration in many of these instances involves how one of the spouse’s business ownership could be affected by the divorce settlement.
The state of Missouri is an equitable distribution state where a court has the authority to split all qualifying marital assets in a manner it deems most fair. Because of this, the most critical aspect in whether or not one’s business will be subject to division is if it is separate or marital property. Separate property includes any items owned by one of the spouses before the marriage and is typically excluded from the division of assets. Contrarily, marital property includes all things accumulated during the marriage.
How to determine if a business is separate or marital property
There are a multitude of factors that a court may take into consideration to determine if a spouse’s business is eligible for property division. One primary consideration is if the company was formally established before or after the couple got married. Another critical factor is the level of involvement the spouse who didn’t own the business had with any of its operations. This can include directly handling specific job duties, or it can include indirectly impacting the company by taking care of family responsibilities, freeing up the other spouse.
More impact of divorce process on business ownership
How much a spouse’s business is worth can impact more than just the division of marital property during a high asset divorce. Determining an accurate business valuation, which is often a complex and sometimes overwhelming process, can be critical for future spousal and child support payments. With such a high degree of potential variance in all of these divorce-related matters, taking advantage of the support and guidance from an experienced Missouri family law attorney can increase the chances of receiving the most financially beneficial settlement possible.
