What happens to your business during a divorce in Louisville or anywhere in Jefferson County Kentucky?
Generally speaking, the spouse who has the ownership interest in the business must buy out the marital property interest of the non-ownership spouse. When both spouses are working together sharing joint interest of the business there are three likely outcomes:
1. The business is sold and the marital property proceeds are divided between the spouses.
2. One of the spouses purchases the marital property interest of the other spouse, or
3. Both agree to continue working together as “partners” continuing joint ownership of the business. This option requires a unique blend of ownership interest verification, a working relationship between the parties and justification to the court the arrangement is basically “fair and equal.”
Complications arise when the business ownership or professional practice was acquired or begun prior to the marriage. In these cases the question becomes much more complex. What portion of the asset is considered to be the separate property of the spouse with business ownership, and what portion of the value of the asset (if any) is considered to be a marital property interest in the business?
Divorces which involve a business or professional practice require an attorney with extensive skill, expertise and experience. The Experienced divorce and family law attorneys of Dodd & Dodd have decades of experience in these cases before Louisville family law courts. We provide sound advice and counsel for our clients informed by this experience as well as Kentucky family law.
Now that you know a little more about what happens to your business during a divorce we invite you to review the recommendations of our clients and contact Dodd & Dodd or call 502-584-1108 to schedule an appointment with one of our attorneys. We will discuss your unique situation and the strategies to protect the ongoing operations of the business as well as the process of valuation and the marital property issues associated with your case.