Protecting Your Business In A Divorce

Divorce can be especially stressful for you, as a business owner, because a lack of strategic planning could put the financial health of your company at risk. Therefore, it is essential to work with attorneys who understand how to protect your business assets and your financial future.

Our lawyers at Cole Law Group represent business owners or their spouses in the Nashville area who are going through the divorce process. Founding Attorney Todd Cole has a particular interest in the protection of business assets because of his previous career in the business sector coupled with his subsequent practice of family law.

Determining Marital Vs. Non-Marital Property

If you started a business before the marriage and your spouse did not contribute to the business in any way, then the company will likely be considered a non marital asset of which you retain total control. For small business owners, however, this is often not the case. In making a determination as to whether the business is a marital or non-marital asset, the court will consider the following factors:

  • Is the business jointly owned by you and your spouse?
  • Did your spouse work at the business?
  • Even if you started the business before your marriage or you inherited it, did your spouse make significant contributions that increased the value of the enterprise?

The Right Valuation Is Key

Whether we are representing the owner or the spouse, we may choose to work with business appraisers to determine the proper valuation of the business and what part, if any, is subject to equitable distribution. For the owner, we will try to protect your assets by not letting your spouse overstate the value. If you are the spouse, we will fight to prevent an undervaluation that will affect your share.

Finding A Solution That Works For You

In most cases, if you and your spouse have been working together in the business, you will not continue to do so. Viable resolutions to such a scenario could mean one spouse buying out the other's interest in the business, or one spouse retaining total control of the business and its assets while the other gets a comparable piece of the estate. It could also mean selling the business and splitting the proceeds.

Cole Law Group divorce attorneys will work rigorously to find a resolution that keeps the business running smoothly while protecting your investment. In many cases, we advise against long, time-consuming litigation that will drain your finances. Our approach is to work toward creative solutions which are tailor-made to fit your needs.

Learn More At A Consultation Today

Before making any decisions, discuss your options with our family law firm. Schedule a consultation by sending us an email or by calling our office in Brentwood, Tennessee, at 615-490-6020.