Getting divorced is hard no matter what your situation is, but it can be especially tricky for business owners. If you own a business, it is likely your most substantial marital asset. You, your spouse, or both of you may have worked very hard to build it and, now that your marriage is ending, you are likely concerned about its future. Unless you have a prenuptial or postnuptial agreement in place that states how property will be divided, your business will be divided according to Nevada’s community property laws.
Dividing a Business in a Nevada Divorce
Typically, in most cases, both spouses have a claim to the business. However, it is also possible that you may have outside investors who have an ownership stake in the business as well. Moreover, if you or your spouse began the business before you got married, some of it will be considered separate property.
A lot goes into dividing a business in a divorce. Assessing the value of the business will be one of the most crucial steps. A valuation report will likely include geographic data, demographic data, an analysis of the assets and debts of the business, goodwill, and the health and trends of the industry your business is part of. If your business is rapidly growing, it may be more difficult to value your business since current earnings may not be relevant to future earnings.
During the divorce process, you and your spouse should decide if you would prefer to sell the business to a third party and split the profits or for one of you to buy out the other. If you choose to buy out your spouse, there are a number of ways to accomplish this. The amount and terms of the buy-out will need to be agreed upon based upon the valuation of the business as well as the accessibility to funds to accomplish the buy-out. If you have the available cash, you can make a lump-sum payment to your spouse as and for the buy-out. If you do not have available cash to make a lump-sum payment, periodic monthly payments to your spouse may be the only viable option to accomplish the buy-out. Another option would be an agreement to unequally divide other marital assets so that the resulting settlement is fair to all concerned.
Of course, this can be a complicated process, so do not hesitate to contact an experienced divorce attorney to handle your case.
Discuss Your Divorce with an Experienced Family Law Attorney Today!
If you own a business and are getting a divorce, the family law team at Law Practice, Ltd. can assist you. With more than 30 years of experience on our side, you can rely on us to protect your interests.
Call our law office today at (702) 899-2875 to set up a consultation.