Determining Ownership of a Business
When a couple files for divorce in North Carolina, any business they own is one of the assets that needs to be divided. This can be a complicated process, as there are many things to consider when splitting up a business. To make the process go as smoothly as possible, it is essential to understand the different factors influencing how the business is divided.
Factors to Consider in Business Division
Some things that will need to be taken into account include: who owns the business, what type of business it is, how much money the business makes, and who does the day-to-day work on the business. Each of these factors will play a role in determining how the business is divided.
Options for Dividing Businesses
When it comes to splitting up a business in a divorce, there are a few main options that are typically considered. The first option is for the couple to divide the business ownership equally. The second option is for one spouse to purchase the other spouse's ownership stake, therefore buying out their business interest. And the third option is for one spouse to take over the business entirely while the other spouse receives some other assets in place of their interest in the business.
Which option is chosen often depends on the specific circumstances of the divorce. For example, if one spouse has more experience in running the business, they may be more likely to take over ownership completely. Or if one spouse contributed more money to start up the business, they may be more likely to receive a buyout.
Work With a Family Law Attorney for Business Division
It is important to note that these are just general guidelines, and each situation will be different. So if you are going through a divorce and have questions about how your business will be divided, it is important to speak with an attorney who can help you navigate these complicated waters. At Blood Law, PLLC, we work hard to protect our clients' rights throughout the entirety of the divorce process and will do the same for you.
Learn more or schedule a consultation by calling (704) 286-0570 or visiting our website.