Maintaining A Successful Family Business During Divorce

Family businesses are at the heart of the American dream, but owning a family business can mean that divorce puts your livelihood at stake. Regardless of who started or operated the business, some or all of the business may be marital property and need to be valued and divided.

I am Jeanne Frazee. My goal as your lawyer is to ensure that you are able to thrive after your divorce. Properly evaluating and dividing complicated assets like a business is key to your future.

I have spent over 30 years as an attorney representing Livonia and metro Detroit business owners during divorce. With my extensive family law knowledge, I can provide you with the counsel and context you need during this time in your life. Minimize your stress by working with me. Email me and let me know about your situation.

Are You Accurately Evaluating Your Business’s Worth?

A business is more than just a storefront. Inventory, investments, employment and potential growth all have a role in business valuation. There are many ways to evaluate a business’s worth. Realistically, applying multiple methods helps create a complete picture of your business. At the Law Offices of Jeanne M. Frazee, I utilized recognized experts to assist in:

• Accounting for your business’s known assets
• Determining the business expenditures
• Evaluating your business’s market value

Once you have a full business valuation, you can make wise choices about how to divide your business. The Law Offices of Jeanne M. Frazee regularly works with the business community. I have resources to properly account for your business’s full worth.

How Is A Business Valued During Divorce Proceedings?

First, you must determine the business’s true worth. This is a critical step. I frequently hire a financial analyst to perform this valuation. This analyst looks at many things, including financial statements, assets and debts. They consider the market value and the future earning potential of the business. The final value allows for a fair division of the marital property. As your lawyer, I help gather all necessary records and protect your right to a fair assessment.

What Methods Are Used To Divide A Business In A Divorce?

There are a few common ways to divide a business, including:

• A buyout: One spouse keeps the business. That spouse then buys out the other spouse’s interest. They use other marital assets to pay for this share.
• Sale: Another option is to sell the business. Then, the spouses divide the proceeds.
• Joint ownership: Sometimes, the former spouses continue running the business together.

I can help you explore all options and choose the solution that best meets your long-term goals.

Can A Business Be Considered Separate Property If It Was Started Before Marriage?

Yes, the court may still count a business started before the marriage as separate property. However, it is rarely that simple. If either of you invested marital funds into the business, the value may have grown. If either spouse actively worked for the business during the marriage, that effort may create a marital interest. The increase in value during the marriage is often considered marital property and, as such, is subject to division. My goal as your lawyer is to correctly identify what parts are divisible.

Ensure Your Property Division Negotiations Are Fair

Divorces are emotional. Dividing your family business only adds to those emotions. Make sure you have a calming presence during negotiations. Reach out to my office at 734-234-1868. From my Livonia office, I provide comprehensive divorce services to families across the metropolitan Detroit region.