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Royal Oak Divorce for Business Owners

Royal Oak Divorce for Business Owners

In general, Michigan divorce law requires an equitable division of property acquired by a couple during the marriage, in the absence of an agreement between the respective spouses. With assets like the primary residence, a vacation home, or cars, the matter is relatively straightforward. However, when the marital assets include ownership in a business, property division is more complex. Both legal and practical issues complicate the distribution, and emotion can play a significant role.

The legal professionals at Iafrate & Salassa, P.C. understand that a business isn’t just any asset. You’ve invested time, money, and other resources, but your ownership interest goes beyond what’s on the books. Our legal team has represented many Royal Oak, MI clients in complex divorce proceedings, including spouses who own a company. We have the experience and knowledge to protect your livelihood, whether we’re sitting at the negotiation table discussing settlement or representing you in court.

Your Advocate in Complex Divorce Matters

Like any other asset involved in a divorce case, the initial inquiry into ownership of a business is whether it qualifies as a non-marital or marital asset. Marital property is subject to fair and equitable distribution under Michigan law, so we’ll work to make sure your interest falls into the proper classification. Where it’s necessary to address your company as a marital asset, the attorneys at Iafrate & Salassa, P.C. will help with:

  • Determining Fair Market Value: If spouses want to consider one buying out the other or selling off the business, it’s necessary to establish the amount that should be paid. There are highly technical formulas for assessing fair market value, but an attorney can work with financial experts to use the methodology that works best for you.

Note that, in deciding market value of a business, it’s common to include intangibles like reputation. Both can carry considerable weight, and may be tied to one spouse. If that individual is no longer involved in the business, the company’s worth would be less.

  • Buyout Agreements: Once you establish fair market value, it’s possible to complete a buyout between the spouses. Still, you must formalize the transaction to transition the ownership from one person to the other. Regardless of whether you’re the seller or buyer, it’s important to have an attorney assist with the agreement.
  • Selling Off to a Third Party: If you and your spouse agree to sell or are ordered to do so by the court, you will need legal help ensuring a smooth transaction. A lawyer can help draft, negotiate, and execute the essential documents.

Discuss Divorce for Business Owners with Our Michigan Attorneys

If you’re a business owner currently going through or considering a divorce in Michigan, it’s critical to discuss your options with a knowledgeable attorney. The legal team at Iafrate & Salassa, P.C. has nearly five decades of combined experience in divorce cases, and we’ll fight to protect your ownership interest. For more information or to set up a free consultation, please contact our office at (586) 263-1600 or send us an E-mail regarding scheduling.

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