Handling Business in Divorce
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If you or your spouse owns a business or professional practice of some sort, you will need the assistance of a divorce lawyer more than ever. Owning a business or practice can complicate the divorce since it is a major asset that needs to be analyzed. Fortunately, we at Brian D. Perskin & Associates P.C. have over 40 years of experience handling cases that involve complex details.
HOW SHOULD YOUR DIVORCE BE HANDLED?
Whether you own a law firm, doctor’s office, or other type of practice, the value of the business needs to be determined. This must be done by a professional if you want accurate results, which is why you need to hire a divorce lawyer who has handled these types of cases. In addition, it will need to be determined whether the business counts as an asset that can be divided along with your other property, or as a source of income. If it is the latter, the amount of profits will affect child support and alimony.
Before the business is valued, it is needs to be clear that various details will factor in. For example, the economic climate at the time of the valuation can affect the final number. Projected earnings and the value of important employees will also need to be considered before an amount can be determined.
It can be difficult to analyze profit and loss statements and other important documents related to your business. It can be even harder to accurately value the business and decide whether it counts as an asset to be divided or income to be included when determining spousal support.
FINDING HIDDEN ASSETS
If your spouse owns a business and is worried that you will get more than he or she thinks you deserve, he or she may begin hiding business assets. Many people do everything they can to make it look like their business is failing and therefore not worth much. If your spouse suddenly starts complaining about financial issues regarding the business, when things were just fine before the divorce, we can help uncover the lies.
One of the ways we can find hidden business assets is by looking at tax documents. We can carefully analyze forms that share a wealth of information, such as those dealing with itemized deductions, profits and losses, capital gains and losses, and assets that produce interest.
Whether you think your spouse has hidden cash or is trying hard to make it appear that the business is doing badly, we can assist you. We know how to investigate the financial side of the business to find out what is really going on so that you get the money you are entitled to.
WHAT HAPPENS TO THE BUSINESS?
Not surprisingly, it can be difficult to determine just how to divide the business, even when you and your spouse are being honest with each other about the financial state of the company. You have a few options that will depend on your preferences and your own unique circumstance.
If the business is your only means of income, or if it means a lot to your family, you can continue to both own it. However, you will need to draw up the proper documents to make sure one spouse is not taken advantage of in the future, and a divorce lawyer can help with this. Just make sure you and your spouse can get along well enough to own a business together.
If it is too complicated to divide the business as it stands, you can sell it now. Then you and your spouse can split the profits fairly. This can take a lot of the complications out of a divorce that involves dealing with a business, but the outcome depends on whether you can find a buyer before the divorce is complete.
If one of you wants to keep the business, you can arrange a buyout. In this case, the owner of the business could give the spouse the equivalent of 50 percent in cash. Of course, this requires valuation, but this option may be helpful when you do not want to completely get rid of the business.
HIRE A NEW YORK DIVORCE LAWYER WHO HAS DEALT WITH BUSINESSES
Our legal team has over four decades of experience representing divorcing couples. Several of our clients have owned businesses that needed to be analyzed before we could determine how to divide the asset. If you or your spouse owns a business, contact Brian D. Perskin & Associates P.C. for the expert advice you need. After all, your financial situation depends on your ability to get accurate legal counsel regarding your business during divorce.