What If Both Parties Want To Continue Co-Owning A Business After Divorce?
In general, the courts do not encourage divorced spouses to continue co-owning a business. However, a couple can put stipulations in their marital settlement agreement regarding ongoing participation in a business. If this is done, it would be well-advised for the couple to hire a business attorney to set up proper, specific, and enforceable contracts in case the ongoing business between the two future divorced spouses falls apart. A business divorce can be very messy and very expensive.
If Our Business Has Stock Options Involved, How Would That Be Divided Up In A Divorce?
Stock options are valued just like any other asset. It might be beneficial to hire an expert or someone who specializes in that particular area to value the stock options. The simplest way to divide stock options is to divide them in half. This is because they don’t necessarily have a present value, but they will have a future value. For example, if there are 10 stock options, then each spouse could be given five; this way, a dollar value would not have to be placed on each stock because the spouses would be receiving the same amount.
Can I Be Protected From My Spouse’s Business Debts In A Divorce?
If the business is a marital asset, then the business liabilities will be considered a part of the marital estate. However, a marital settlement agreement can be drafted to indicate that the spouse who has been participating in the business (or will continue to participate in the business) is solely responsible for all of the business debt going forward.
What Would Be Considered A High-Net-Worth Or High-Asset Divorce?
High-asset divorces involve spouses who have a lot of money. Generally, these divorces involve high incomes, businesses, multiple properties, lots of money in the bank, and stock accounts.
How Are High-Asset Divorces More Complex Than Regular Divorces?
In any divorce case, the more assets and liabilities there are, the more complex it can be. Some assets might be income streams as well. For example, if a stock account with one million dollars generates 10 percent per year, then there is an income stream of $100,000 per year. When dividing assets, it is important to identify income streams. Generally speaking, if each of the parties in a high-net-worth divorce walks away with enough assets, then it is possible that no support or alimony will be necessary.
Does A High-Asset Divorce Take Longer And Cost More Money Than A Standard Divorce?
A high-asset divorce case won’t necessarily take longer than a standard divorce case, but it might cost more since it will require more of the attorney’s time, and will likely require experts for the valuation of assets and liabilities. In any divorce, the more fighting there is between the parties, the longer it will take and the more it will cost.
What Are The Biggest Mistakes People Make In High-Asset Divorces?
The biggest mistake that people tend to make in high-asset divorce cases is not recognizing the dual nature of high-dollar assets that are also income streams. Another tricky part of high-asset divorces is valuing and dividing retirement assets between the parties. In high-asset divorce cases, it is very important to engage the proper experts when necessary.
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