Table of contents
Table of contents
Going through a divorce or a dissolution can be a traumatic time, no matter how amicable it may be. Likewise, businesses can be equally complicated to sort out during a divorce, which gives way to an important question. Will my business be part of the divorce settlement?
Consider an asset acquired by either spouse or both, before or during the course of a marriage. If it is used in their shared interests, is considered to be a matrimonial asset.
Also referred to as ‘matrimonial property’, examples of this might include:
A business is considered to be an asset, because it is a financial resource. Hopefully, things have been going well, and your business is a source of income!
As a result, it means that businesses are often likely to be considered matrimonial assets during divorce proceedings.
Examples of when your business might be considered to be a marital asset:
Business cases are usually processed through a commercial court. However, it’s the family court which handles divorce cases, and this includes the division of assets.
The financial disclosures will be assessed, with the outcome of those investigations considered alongside other contributions.
In some cases, you might be able to demonstrate that your business is totally without the influence of your spouse. That is, the fact that you own it, or your ability to operate it successfully, has had no input from them. If that’s the case, then it may be classed a non-marital asset.
To be fair, family court does its best to find the best, most reasonable outcome for all involved. This might mean that, rather than the business being carved up between those involved, another solution will be found.
If the business is considered to be matrimonial property, then it will need to be valued so that financial settlement can be calculated. The extent to which the settlement can impact the future of your business can vary!
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