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Business division in a divorce is an issue which comes up with many challenges. The parties separating can fail to agree on many aspects. In order to get the issue solved to your satisfaction, you need to hire a family lawyer who understands how the process is handed. There are many options which can come into play when in the court of law trying to divide your business. Among the options available include:
The business is awarded to a spouse who has greater involvement
The court of law will assess the evidence available and award the business to the spouse who tends to have greater involvement in the business. The other spouse who has less contribution towards the business will be compensated accordingly. The compensation will be based on the level of involvement of the two spouses.
The business may be sold
In some cases, the court will study the claims from each party and decide to sell the business. The business will be sold and the proceeds will be shared among the spouses basing on their contribution. This is a situation which the family court can adopt if letting the business with one of the spouses will fail to meet different needs which may have been legitimately demanded by the spouses.
The business can be jointly operated after divorce
In rare occasions, the business can be jointly operated by the parties after separation. The court will have to assess the two options and decide whether letting the business to be run by both parties will be practical. The two parties should demonstrate to the court that they are willing to have the business running while they relate as business partners.
Valuation and Compensation after Divorce
After the court awards the business to one party, who was more involved in the business, the issue of compensating the other party rises. In this case, the court will have to get reports from a qualified financial expert who will assess the value of the business assets so that the court will compensate the other party accordingly to his or her contribution.
Sharing Business Assets in a Divorce
The court can decide to allow the parties involved continue to jointly run the business. In such a case, both the parties involved should demonstrate to the court that they are necessary for the running of the business. If any spouse will ask for the division of the assets, the court will deny option of jointly running the business venture after divorce.