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Entrepreneurs can face challenges during divorce

On Behalf of | Nov 30, 2017 | Family Law |

Divorcing couples that also are entrepreneurs may find that the emotional and logistical challenges of ending a marriage in Pennsylvania are only exacerbated by the difficulties of dealing with a business during a divorce. When one or both partners own a family or personal business that’s subject to inclusion in asset division, the financial and emotional impact of dealing with it during a divorce can be major. Beyond its financial value, a business can have a high level of emotional resonance for one or both partners involved in the divorce.

For many couples, the business may be a family asset with the highest financial value subject to the divorce settlement. In order to properly handle the business during divorce negotiations and the settlement, it is important to have a verified and accurate valuation of the business. An outside professional, like a forensic accountant or business appraiser from an accounting firm, can help to provide a correct, full understanding of the monetary value of the business. They will take into account assets, inventory, real estate, debts and other liabilities as well as intangible factors like reputation, trade name and growth potential.

Having this kind of precise valuation is very important when figuring out how exactly the business is involved in asset division. Other factors, like when the business was founded or the amount of time and effort both parties invested to it, can also be considered. In some cases, the entire business is sold and the proceeds divided as part of the divorce settlement. However, it is more common that a settlement compensates one partner with other, nonbusiness assets.

A divorce lawyer can be an invaluable ally for a divorcing spouse during a high-asset divorce involving a business or other complicated financial matters. A family law attorney can help to ensure that the interests of a divorcing spouse are protected in property division, spousal support, child custody and other matters.

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