Dividing a Business is important to couples facing divorce in Rogers County. Oklahoma is an equitable distribution state when it comes to divorce. The judge will determine how the property gets divided during a divorce. If you and your ex-spouse jointly own a business, it will be treated as a marital asset. If only one spouse owns the business, but it was started after marriage, it may still be treated as marital property.
If one spouse contributed directly or indirectly to the business (even by way of taking care of the home while letting the other spouse run the business), he or she could still have a share in the business assets, even if the other spouse exclusively owns it or started it before marriage.
Dividing a Business Options To Consider
Once the valuation of the business-related assets and debts is done at the time of divorce, you and your ex-spouse will have to look at your individual interest in the post-divorce continuation of the business. Options that typically exist in these cases include:
If you intend to continue running the business post-divorce and you have adequate funds available, you could consider buying out the share of the other party.
If the business is large with multiple assets, divisions, or subsidiaries, both parties could split the assets and debts and run a part of the business post-divorce.
If both parties are not interested in continuing the business following their divorce, they could sell it outright and split the proceeds.
If the business debts are much higher than the business assets and both spouses are not in a position to pay the creditors, the option of corporate bankruptcy may be considered.
In exceptional circumstances, continue to co-own and run the business together following a divorce.
How to Divide an Inherited Business?
Whether you inherited a business before or after marriage, the family court in Rogers County will treat it as your separate asset during a divorce. The condition is that you should have legally maintained the business throughout your marriage as a separate property.
If during the course of marriage, you added your spouse as a co-owner or made him or her partner or director just for the purpose of business management or taxation benefits, even your inherited family business in this case may be treated as a marital property subject to division during a divorce.
Prenup or Postnup can Protect Business Ownership
A prenuptial agreement is one of the most effective ways to protect assets in a divorce. A prenuptial agreement designates how marital on non-marital assets are divided. Even is you start the business after you’re married the business and its division can still be decided beforehand.
The key to a prenuptial agreement is that it clearly sets out the property and its division. Its also important that the agreement makes full asset disclosers. If all the important elements to an enforceable prenup are met dividing a business in divorce is made much easier.
Claremore Divorce Attorney Near You
Whether you are contemplating a separation or a divorce proceeding dividing marital assets is a part of it. In this circumstance it makes sense to have an attorney in your corner with experience dividing a business in divorce. Contact Kania Law Office Claremore attorneys for a free consultation 918.379.4872
