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The Complex Correlation Between Ownership in Businesses and Divorce

Posted by Crissy Del Percio | Dec 29, 2019 | 0 Comments

ownership in businesses and divorce

Divorce can be complex enough on its own; when coupled with business ownership, its complexity increases exponentially. This article delves into the intricate intersection between divorce law, business ownership, and marital dissolution as well as business ventures; including its challenges, considerations, and strategies for those navigating this intersection between marital dissolution, entrepreneurial endeavors, and divorce.

Ownership of a business can be one of the greatest assets to any person, both emotionally and financially. Understanding its effect upon divorce proceedings when marriages end is crucial in protecting both your financial interests as well as maintaining its viability in future business endeavors.


Value of the Business

The valuation of a business can be an essential element in divorce proceedings involving its ownership, so its accurate appraisal may require consulting a forensic accountant or specialist in business valuation to assess its true worth accurately. Assessing this includes factors like revenue and assets.


The structure of the business

The structure of the business can play an essential role in divorce proceedings. Divorce proceedings can be affected differently by different forms of business structures like sole proprietorships or partnerships; each can affect proceedings differently. Business assets may be treated either as marital property or separately depending on when and how each spouse contributed to its creation.



Agreements such as postnuptial and prenuptial can have a substantial effect on how assets are divided after divorce, providing clarity and predictability in an otherwise complex process. In the absence of pre-existing agreements, courts will consider several factors when distributing assets equitably. They include each spouse's contribution and role in its success while taking into account whether it was established during marriage. Their aim should be a just and fair resolution that reflects each party's contribution.



Buyouts are one of the more common solutions to business ownership during divorce. In this arrangement, one spouse purchases their business share from another either as a lump sum payment or through structured installments. When determining a fair buyout price it is essential to take into account both parties' respective economic capabilities as well as business value and potential earnings potential.



Co-ownership may also be an option, particularly if both spouses were instrumental in the success of the business. Co-ownership requires great cooperation; however, both can continue reaping the rewards of its success.


Comprehensive agreement

To protect a business in the event of divorce, it may be necessary to implement measures that ensure its continuance. For example, this may mean creating a comprehensive agreement covering its operations while outlining roles and responsibilities as well as setting protocols to make decisions quickly. This will prevent disruptions that could jeopardize its stability.

Emotions may run high during a divorce proceeding and significantly impede negotiations and decision-making processes. Legal professionals with expertise in both family law and business law may prove invaluable, helping you navigate legal complexities while upholding client rights and finding solutions that secure both parties' business and financial interests.

Divorce and business ownership can be two complex issues to navigate successfully. Individuals faced with this difficult situation must learn about divorce laws, valuation processes, and resolution options available for resolution. Professional guidance may be essential in successfully navigating this treacherous terrain and open communication can help address this challenge as well.

To learn more about the relation between business ownership and divorce or to hire a divorce lawyer in Kansas City, contact Drama Free Divorce at (816) 615-5555 and talk to one of our legal professionals. Our divorce attorneys are happy to help people like you navigate divorce related laws and get through their divorce process economically and amicably.

About the Author

Crissy Del Percio

Crissy Del Percio is a graduate of the University of Missouri-Kansas City School of Law. Additionally, she received her undergraduate degrees in Journalism (News and Information) and Communication Studies from the world-renowned home of the Jayhawks – the University of Kansas. She has been practicing law for a decade and spent the first part of her career specializing in helping low-income survivors of domestic violence. Now at Drama-Free Divorce, Crissy enjoys helping people consciously uncouple. She is also a Guardian Ad Litem and domestic mediator. Crissy has won a number of prestigious awards for her work in public service, but you likely recognize her from her acting career, where she is also an award-winner. In her free time, she enjoys spending time with her egregiously overpriced dog, Augustus Rodham and knitting. 


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