If you are a business owner and you are going through a divorce, your divorce may be more complicated than it would be otherwise. Valuating a business in a divorce, and determining how the business should be divided amongst the couple, can be very complicated, and should not be pursued without the assistance of an experienced legal professional.
Regardless of how you and your spouse decide to split the business upon separation, the business must be valuated to determine what it is worth (this is essential for making a determination about an equitable distribution). In order to valuate a business, it is necessary to hire a third-party expert. The expert will determine the value of a business based on one of three approaches: the market approach (the comparison of the business to other like businesses), the asset approach (the value of all of the businesses assets and liabilities), or the income approach (essentially, the value of the cash flow and potential future cash flow).
Ohio is an equitable distribution state, which means that all marital assets–i.e., those assets acquired during the course of the marriage, no matter who acquired them–are to be divided equitably. This includes funds from a business, even if the business was formed by one party prior to the marriage.
There are a number of ways that you and your spouse may choose to split your business if you own it together, or if it is being counted as part of your marital assets subject to division. You may decide to sell the business and split the profits equally; to give up the business in return for something else, such as a shared home; or to buy out your spouse’s share if you wish to keep the business (one of the reasons that valuation is so important!). You and your spouse have the right to decide how you would like to split your assets, but if you cannot reach an agreement out of court, then a judge will make a determination that they find to be equitable.
Owning a business can make getting a divorce a more complicated matter than it already is, especially when your business is of great importance to you or is of high value. To provide you with competent legal representation that you can count on, and to work with an advocate who will always prioritize your best interests, you need a knowledgeable Dayton divorce attorney for business owners. At the Comunale Law Office, our Dayton family law attorneys have experience valuating businesses and helping client divide them in divorce. To learn more, contact us today online or by phone for a consultation.
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