When one or more individuals in a marriage are business owners, it can make the process of a divorce much more complicated. The attorneys at Lawrence & Jecmen PLLC understand the legal complexities involved in navigating divorce and business ownership successfully.
Who Owns the Business in a Divorce?
Although one spouse’s name may be on the organizational documents of a business, that does not necessarily mean that it is that spouse’s sole property. The court may view the business as ‘community’ or joint marital property. Thus, it may be considered in the division of property in the divorce. The value of the business will need to be determined. Our attorneys are experienced in addressing the issues regarding division of business value in a divorce.
Deciding the Value of a Business in a Divorce
You should be prepared for an analysis of your business to evaluate its value. There are a number of factors that are used to determine the value of a business in the divorce process, some of which include:
- Tangible property (assets)
- Intangible property
- Financial accounts
- Company’s profitability
Business Division During a Divorce: What is the Law in Arizona?
A business that is created during marriage is considered community property under Arizona law. However, this does not necessarily mean the company itself will be divided equally between spouses. Often one spouse is awarded the business while the other spouse is awarded their value of the business which is paid with an equalization payment.
Most assume that if the business was created or inherited by one spouse prior to the marriage that the company is separate property and not subject to division in the divorce. This may be true, but not always. If the value of the business increased during the marriage due to the labor of one spouse or due to certain financial contributions - the other spouse may have an interest in the increased value.
Will a Prenuptial Agreement Protect My Business During a Divorce?
A prenuptial agreement is an important protection for a business in a divorce. Our divorce attorneys evaluate whether a prenuptial agreement is appropriate for business owners to protect their business value post-marriage in the event of a divorce.
Experienced Business Divorce Lawyers
We have years of experience in guiding and directing business owners during a divorce. The attorneys at Lawrence & Jecmen PLLC understand that this is a highly complex area of law. Contact our professional attorneys at (602) 807-1400 who have experience in this area to discuss your situation today.