What Happens To The Business In Divorce?
Determining The Balance Of Ownership In Divorce
When a business ownership interest is at stake in divorce, the law can be complex and negotiations fierce. William C. Gentry has skillfully helped numerous clients regarding business ownership and divorce, both for the spouses who have created businesses and those who have enabled their spouses to build businesses. Mr. Gentry can help you value the business and negotiate aggressively to reach a fair division.
The Challenges Of The Closely Held Business
Closely held businesses, including partnerships, limited liability corporations, professional practices and other entities can be difficult to divide in a divorce. However, such closely held businesses can be marital property and subject to equitable division.
The business may have provisions in the articles of incorporation or bylaws regarding ownership transfers that can impact your divorce. In many cases, ownership interests in closely held businesses are nontransferable. In addition, ownership interests can be hard to value.
There are three general methods for obtaining a value for a closely held business in a high-asset divorce. They are:
- Capitalized earnings method
- Market approach method
- Cost approach method
The court has discretion regarding which method to use that will obtain the closest true value of the business interests. Which one is best for you will depend on your individual circumstances.
Bill Gentry can walk you through your ownership interests and how best to obtain an accurate value. Overvaluing or undervaluing the business interests can have a significant impact on your finances, including alimony amounts and in the division of assets.
Discovering Hidden Assets
When one party to the divorce owns a business, the other party may be unaware of some of the business’s finances. In such a situation, the party without all of the financial information can be left with less of a share of the marital property than is equitable.
Gentry Law Firm, LLC, pursues all avenues to discover hidden assets. After 30 years of practicing divorce law in Cobb County and surrounding areas, Bill Gentry has developed a network of expert and reliable professionals who can help you get the information you need. We can hire forensic accountants, business valuation experts and others who can take a thorough accounting of the business’s finances.
Protect Your Stake In The Business: Schedule An Initial Consultation
For an initial consultation with a noted high-asset divorce lawyer, reach us at 770-884-4171 or through this online form. Located in Marietta, Georgia, we represent clients throughout Cobb County and surrounding areas.