Divorce When You Are a Business Owner
Divorce When You Are a Business Owner. Going through a contested divorce is one of the most difficult things anyone can ever go through, however, going through a divorce when you are a business owner, can be even more difficult because of the impact the divorce can have on you while you are trying to run your business and earn a living. When looking at issues involving a divorce when you are a business owner, you must first look at what the Court must do in any divorce action. First, the Court must identify and assign a value to all assets and liabilities of the marriage. Determining the value of a business can be as simple as using the last year balance sheet, or as complex as having competing forensic accountants testifying to the Court as to each of their expert opinions as to the value of the business.
Another difficult divorce issue when you are a business owner involves how to calculate the income of the business owner for spousal support and child support purposes. Determining how to calculate “self employment” income is discussed in more detail here. Determining how to calculate income for purposes of spousal support when going through a divorce as a business owner can run into an issue referred to as “double dipping.” This legal concept occurs when a Court equally divides the business as a marital asset, when it requires one married person to “buy out” the other married person’s 1/2 marital interest as part of the divorce, then requires the person who is retaining the business to pay spousal support from their remaining 1/2 of the business. Basically allowing one married person to cash out their 1/2 interest ownership in the business, and retain an income stream from the remaining 1/2.
In Ohio, O.R.C. 3105.171 statutorily mandates the division of marital property to be equal. If an equal division of marital property would be inequitable, the court shall not divide the marital property equally, but instead shall divide it between the spouses in the manner the court determines equitable. In making a division of marital property, the court shall consider all relevant factors, including but not limited to, the duration of marriage, the assets and liabilities of the spouses, the economic desirability of retaining intact an asset or an interest in an asset, and any other factor that the court expressly finds to be relevant and equitable.
The Law Office of Anthony W. Greco is committed to representing each and every Client with professional, aggressive and practical representation, while being sensitive to the Client’s unique concerns and goals. With more than 22 years of experience, our firm is equipped to deal with all issues involved when going through a divorce when you are a business owner. The Law Office of Anthony Greco is prepared to aggressively represent its Clients’ concerns and interests from the first day we meet through the completion of your case.