Divorce is often a time of heightened emotions and tension as two people attempt to divide the things that they have shared. Property division can be one of the most stressful aspects of the separation for many couples. This can be especially true for those who own a business, whether it is owned by both or solely one party. Pennsylvania business owners considering divorce have added assets with which to be concerned.
When dividing a business, it is important to take into account when the business was started. If it began prior to the marriage, its value at that point will have to be ascertained. Additionally, its value at the time the divorce papers were filed will need to be considered, and the difference between the two determined. All of these calculations help to reveal which property is one party’s and which is marital.
Businesses that were started during marriage are typically considered marital property, regardless of which party owns it legally. Once the value of the business has been determined, there are generally three options for how it can be divided. First, one party can choose to buy out the other party’s share. Otherwise, the business can be sold, and the resulting finances split equally, or the two parties can continue to share ownership of the business.
While there are some other aspects that should be taken into consideration when dividing a business, when it was started is a major factor. Couples who are divorcing in Pennsylvania who are also dividing businesses may want to seek guidance from experienced professionals. With their help, the property division process can be less stressful for all involved.
Source: foxbusiness.com, “Could You Lose Your Business in a Divorce?”, Rebecca Zung, Aug. 7, 2015
