Owning a business and going through the divorce process at the same time can be very overwhelming. In addition to dealing with the daily stress of business, business owners must also ensure that they make good decisions for the future at this difficult juncture in their lives. Failing to make good decisions at this time could have a very negative impact on the business later on down the road.
Experienced Michigan divorce attorney Michael Robbins of the Law Offices of Michael A. Robbins can assist you with the complex process of dividing a business as part of a legal divorce proceeding. Our attorneys will guide you every step of the way and help you make informed decisions about how best to proceed with your case.
When a Business is Considered Marital Property
In the majority of divorce cases, if either you or your spouse began a business at some point over the course of your marriage, that business will most likely be considered marital property. Consequently, if you decide to divorce, both you and your spouse would likely be allowed to receive some share of the business entity or the profits therefrom.
Even in cases where only one spouse works in the business during the marriage, and the other spouse is a stay-at-home mom and homemaker throughout the marriage, it is still likely that both spouses will be allowed some share of the business (or the business profits) in the event of a divorce. In determining the amount of the business that each spouse receives, courts will likely consider the contributions of each spouse over the course of the parties’ marriage.
When a Business is not Considered Marital Property
In cases where one of the spouses began a business prior to the parties’ marriage, it is more likely that a court would consider that business as separate property, as opposed to marital property. If the business is considered separate property, then it is not subject to equitable distribution or division in the event of a divorce.
However, if the business expands at any point during the course of the parties’ marriage, it is likely that the business’ increase in value will constitute marital property. Consequently, it would be subject to equitable distribution among the parties in the event they decide to divorce.
Call a Michigan Divorce Attorney about your Property Distribution Issues Today
Distributing marital property during divorce proceedings can be a highly contentious issue. Moreover, no two couples or businesses are alike. The skilled attorneys at the Law Offices of Michael A. Robbins can examine your unique circumstances and explain all of your legal options. We can also work with your spouse’s attorney to help resolve marital property disputes fully and fairly. However, if a resolution cannot be reached, our legal team is ready to litigate your case in the court system as a last resort.
To schedule a free case evaluation and legal consultation with an experienced Michigan divorce attorney, please contact us online today.