Dividing A Business In Divorce
This article will address dividing a business in divorce. Usually, a qualified expert witness will be needed to provide evidence of the valuation of a business. The expert looks at various factors, such as the history of the business, risk involved in the particular business, among other factors. Utilizing such factors, the expert determines the fair market value of the business. The parties will have to decide if they want to agree on a single expert or if they wish to hire their own experts. With the price of a business evaluation expert being $10,000 or more, this is no small decision. Factors that may be considered in whether to share an expert include: whether the business-owning spouse is likely to disclose all assets and liabilities of the business, including receivables; whether the business-owning spouse had a history of keeping thorough and reliable records; and how well the non-business owning spouse knows the business.
Goodwill is certainly part of the consideration and is distinguishable from future earning capacity. Businesses that may not have marital value are professional businesses where ethical rules prohibit the transfer of clients, and not-for-profit corporation (otherwise known as non-profit corporation or 501(C)(3)). If the non-business owning spouse is ethically and legally permitted to participate and own the business, the parties or the court will have to decide whether the spouses will jointly own and operate the business or whether one will buy out the other’s interest.
While a professional license or degree does not have value as property, this factor must be considered in the award of spousal support.
To read more, click on the following links to my other articles on property division, divorce and dissolution: property division for unmarried couples in Ohio, property division in Ohio divorces, dividing retirement benefits in an Ohio divorce, what does the IRS consider to be alimony, when does alimony end in Ohio, when does child support end in Ohio, Ohio alimony factors, Ohio child support terms, everything you wanted to know about Ohio child support, choosing between divorce and dissolution in Ohio, and filing tax returns during a divorce in Ohio.
Attorney Gigiano is a Medina Divorce Attorney in Wadsworth. Attorney Gigiano’s aggressive representation has earned him a number of positive reviews on a number of sites. If you have questions about this or other questions you need answered by an experienced Wooster divorce attorney near Rittman or Akron divorce attorney near Barberton, please call Attorney Daniel F. Gigiano at 330-336-3330.