Our Portland OR Attorney has noticed that in most cases, spouses receive a “fair” share of property in a divorce, not an equal share.
Fairly dividing a business is not as easy as it sounds. Obviously, financials records will have to be analyzed, but there are assets and liabilities to consider as well as a myriad of other things like merchandise, infrastructure, public image, and client goodwill.
The type of business is also a factor. Valuation will be different for a sales-based business than it will be for a service-based business.
Finally, when it comes to dividing a business, it will probably be necessary to determine a present and future value.
Once a business’ value has been determined, it can be divided. How are businesses split in a divorce?
There are several ways to divide a business in a divorce.
• Spouses can sell the business and divide the profits.
• Award individual parts of the business to each spouse.
• One spouse buys the other spouse’s interest in the business.
• One spouse trades their share of the business to the other for assets of equal value.
• The business makes payments to both spouses for a predetermined length of time.
• Don’t do anything. Even though divorced, the couple continues to operate the business as partners.
As you can see, valuing a business in a divorce can be quite complicated. Fortunately, divorce attorneys in Portland Oregon can help you through the process.
One of those attorneys is Ronald Johnston. You can contact him here.