Your business is one of the most valuable assets you have. In your divorce, you understand how critical it is to secure a property division settlement that allows you to keep your business going. You have the right to do everything you can to protect the small business you worked hard to build and grow over the years.
One important step is to understand if your business is marital property, and if it is, what will happen to it. Whether you will negotiate an agreement out of court or you will go to court for a divorce settlement, it’s smart to know what factors can determine what will happen to your company. One of these things is the worth of the business, a fact determined by going through the business valuation process.
What’s it worth?
Divorce does not necessarily mean that you will have to split your company in half and share it with your spouse. However, it is possible that you spouse has a rightful share to at least a portion of assets or profits from your company. The value of your business may affect how much your spouse gets or what you can keep, and this is more than just the physical things your business owns.
Intangible assets also have a significant impact on the value of your company. These are important things that add value to your company, but you may not see them or even think about them when considering what your company is worth. Intangible assets include:
- Patents and patent applications
- Client lists
- Secret processes and proprietary information
- Brand names of trademarks associated with your company
- Contracts with suppliers, clients, employees and others
- Goodwill, which is your company’s reputation and relationship with others
- Tax credits for past company losses
These are just a few of the things that can ultimately affect what your company is worth. Dividing business assets is a complex process, and you will find significant benefit in working with an attorney experienced in financially complicated divorces.
The future of your business
In your divorce, you may feel that the long-term interests of your business are up in the air. With guidance, it is possible to fight for a fair resolution that will allow your business to continue successful operations and provide financial stability for you well into the future. To start, you may want to seek a complete evaluation of your case.
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Author: On behalf of Katie L. Lewis of Katie L. Lewis, P.C. Family Law