Ways Business Owners can Benefit from Collaborative Divorce
If you established your small business after you were married or it grew considerably in value during the marriage, it is subject to equitable division alongside your other marital assets during your divorce unless you specified in a prenuptial agreement that the business is a piece of separate property.
By choosing to divorce through collaborative law, you retain greater control over the property division process. As a business owner, choosing a collaborative divorce can be a strategic move – rather than having the court value and divide your business, you and your spouse can work together to find a post-divorce business solution that works for you. Consider the following ways a business owner can benefit from opting for a collaborative divorce:
You can Split the Business in a Way that Makes Sense for you and your Spouse
Generally, a couple who runs a small business chooses one of the following options in their divorce:
- Selling the business and splitting the proceeds;
- Altering the structure of the business to be a partnership so both parties hold a separate interest in it; or
- One partner buying out the other’s share of the business while the other recoups the loss of the business share with a larger share of the couple’s other assets.
In all of these scenarios, the business must be appraised. There are a few methods the court may use to value a small business. With collaborative divorce, you and your spouse can choose the valuation method you feel is most effective and determine how to divide the shares, especially if you do not plan to divide it equitably. For example, one spouse might want to retain a small interest in the business as an investment while the other takes on its day-to-day operation. In a collaborative divorce, you can be more creative with your post-divorce business plan, which can even include continuing to operate the business together.
Handling the Division of your Business and Other Assets Privately can Save Time and Money
For a business owner, saving money is always a priority. As you know, time is money – the more time you spend in court to work out the details of your divorce, the more money you have to spend and the less time you have to work on building and maintaining your business.
Personal debt you accrue from paying for a traditional divorce can also impact your credit score, which in turn can impact your ability to take out the business loans you need to grow your company.
Work with an Experienced Winter Park Collaborative Divorce Attorney
For a divorcing business owner, collaborative divorce has many benefits. Contact Sperling Ducker today to schedule your legal consultation in our office and learn more about these benefits. After speaking about your case with an experienced Winter Park divorce attorney, you will know whether collaborative divorce is the right choice for you.