How is my business divided in a divorce?

smith-family-business-cubes-5landingHow is my business divided in a divorce? When someone gets divorced, their assets can be subject to different rules in order to divide them. If  one of the spouses began a business before the parties married, only the increase in value from the date of marriage until date of filing the divorce is considered marital. If the business began after the marriage but before one of them filed for divorce, the business’ entire value is marital.  There is also the hiccup that if one spouse has personal goodwill.  Personal Good will, like their name for instance, is not marital. We must know the business’ value at the time of marriage and then at the end of the marriage.

It is absolutely necessary to hire a Certified Public Accountant who has achieved a Business Valuation (ABV) by the American Institute of Certified Public Accountants. CPA’s who are also a ABV are considered experts by the Court. The CPA works well with the attorney to make sure the client receives a fair amount of the value.