Dividing a Business is important to couples facing divorce in Rogers County. Oklahoma is an equitable distribution state when it comes to divorce. The judge will determine how to divide the property during a divorce. If you and your ex-spouse jointly own a business, it will be treated as a marital asset. When only one spouse owns the business, but it was started after marriage, it may still be treated as marital property.
If one spouse contributed directly or indirectly to the business, he or she could still have a share in the business assets, even if the other spouse exclusively owns it or started it before marriage.
Dividing a Business Options To Consider
After the valuation of the business-related assets and debts at the time of divorce, you and your ex-spouse will have to look at your individual interest in the post-divorce continuation of the business. Options that typically exist in these cases include:
- You intend to continue running the business post-divorce and you have adequate funds available, you could consider buying out the share of the other party.
- The business is large with multiple assets, divisions, or subsidiaries, both parties could split the assets and debts and run a part of the business post-divorce.
- If both parties are not continuing the business following their divorce, they could sell it outright and split the proceeds.
- If the business debts are much higher than the business assets and both spouses are not in a position to pay the creditors, you may look into corporate bankruptcy.
In exceptional circumstances, continue to co-own and run the business together following a divorce.
How to Divide an Inherited Business?
Whether you inherited a business before or after marriage, the family court will treat it as your separate asset. The condition is that you should have legally maintained the business throughout your marriage as a separate property.
If during the course of marriage, you added your spouse as a co-owner or made him or her partner or director, even your family business in this case may be marital property subject to division during a divorce.
Prenup or Postnup can Protect Business Ownership
A prenuptial agreement is one of the most effective ways to protect assets in a divorce. A prenuptial agreement designates how to divide marital on non-marital assets. Even if you start the business after, you can still decide its division beforehand.
The key to a prenuptial agreement is that it clearly sets out the property and its division. Its also important that the agreement makes full asset disclosers.
Claremore Divorce Attorney Near You
Whether you are contemplating a separation or a divorce proceeding dividing marital assets is a part of it. In this circumstance it makes sense to have an attorney in your corner with experience dividing a business in divorce. Contact Kania Law Office Claremore attorneys for a free consultation 918.379.4872
