Divorce for Business Owners

Clinton Township Lawyers Representing Business Owners in Divorce

businessowner who called client township divorce lawyer working on paperwork

SOLUTIONS FOR YOU

Under Michigan law, each spouse is entitled to an equitable distribution of assets rather than a 50-50 split. However, when marital property includes interests in a business, the situation raises complicated legal issues where emotions can run high. In a hotly contested dispute over business ownership, it’s critical to retain a Clinton Township divorce attorney that will protect your rights and livelihood.

The lawyers at Iafrate & Salassa, P.C. have represented the interests of many clients in complex Michigan divorce cases, including business owners seeking to safeguard one of their most precious assets. Dissolving your marriage may mean dividing your business, but principles of equity still apply. Our experienced attorneys can advise you on your rights and provide guidance to help you make informed decisions. There are many benefits to reaching an agreement regarding ownership interests in a business, but we’re ready to take the battle to court in the absence of an accord.

Skillful, Dedicated Representation in Complex Divorce Cases

While ownership of a closely held company is unique in a divorce setting, it’s still necessary to determine whether the interest is a marital or non-marital asset. Marital property is subject to division, whereas non-marital is not. The distinction isn’t always clear under Michigan law, so our attorneys draw from a comprehensive knowledge base to firmly establish your interest within the proper category. When the determination results in a finding that your business interest is marital property subject to division, the lawyers at Iafrate & Salassa, P.C. are at your side to assist with:

  • Business Fair Market Value: In a typical case where one spouse will buy out the other, you must establish the fair market value of the company. There are different valuation methods, and an attorney can help you choose the approach that makes the most sense for your situation. Options include:
    • Market Method, which involves evaluation of similar businesses in your location and industry to determine the value of your own company; and,
    • Income Method, which looks at cash flow over a designated period of time to predict future performance and value.

Determining fair market value of a business is a highly technical process that usually requires you to hire a financial professional. Plus, there is the value of goodwill and reputation, which further complicates the assessment.

  • Buyout Agreements: After establishing the value of the business, it’s necessary to memorialize the transition for one spouse to buy out the other’s interest. It’s critical to retain a lawyer to assist with the process, whether you’re on the purchasing or selling side. Mistakes can be costly where they result in an incomplete transaction that’s not legally binding.

Contact Our Michigan Attorneys About Divorce for Business Owners

At Iafrate & Salassa, P.C., our complex divorce practice group possesses nearly 50 years of combined experience in the practice of Michigan divorce law. We have the skills and in-depth knowledge to ensure protection of your rights as a business owner going through the dissolution of marriage process. For more information or to schedule a free case evaluation, please contact our Clinton Township office today to discuss your circumstances. You can reach us by phone at 586-263-1600 or send an E-mail to schedule an appointment with a lawyer.

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