July 31, 2019
In most divorces, dividing up property is fairly straightforward. However, when there is a business involved, things get a little bit more complicated. What happens during your Maryland divorce if you have a business as part of your marital property?
First, a value needs to be assigned to the business in the same way that it needs to be assigned to any other piece of marital property. Developing a set dollar amount for the value of a business can be tricky, and usually involves the help of a business valuation expert. In many cases, both parties will rely on an expert witness to give a valuation of the business in court. You should always work with a skilled Maryland attorney like Alan L. Billian, P.A. to accurately prepare and present the value estimate during your case.
How Is the Business Divided?
In short, it is not. In every case, there might be a different outcome depending on existing contracts and the ownership division of the business and stock. In some cases, one spouse will be awarded ownership of the business, and the other will be given a monetary award for their contributions to the business. Because Maryland divides property in a fashion that it deems fair or equitable, it does not mean that both parties will be awarded 50%, or the party that is given a monetary award will receive 50% of the business’s value.
In other cases, where spouses both own the business, and each party owns 50% of the stock, the court cannot necessarily rule on a resolution. Moving forward, beyond the divorce proceedings themselves, the divorcing couple may need to dissolve the corporation if they cannot come to a satisfactory resolution through negotiation. Always retain a lawyer during the division or negotiation process to ensure that you receive what is fair for your efforts to contribute to your marital property and business.
Help with Dividing Marital Property from Alan L. Billian, P.A.
At Alan L. Billian, P.A., we are dedicated to offering every client personal attention and utilizing our years of experience to tackle unique legal challenges. Our team always aims to support each client and minimize the emotional burden and stress, even during intense family law cases. To learn more about our services and tell us more about your legal issues, please contact us today for a complimentary email, phone or 30-minute office consultation.