The fundamentals of the local economy have greatly changed over the past several years. It is much more common to encounter divorce clients who are concerned with how to protect business ownership in a Shepherdsville Kentucky divorce. What happens if you own an interest as a member in an LLC, a shareholder in a corporation, or a professional practice? What do you need to know about your company and how it will be handled during your divorce?
My name is John Schmidt, and after more than 25 years of working with people facing a divorce in Shepherdsville, Mount Washington, Shelbyville, Taylorsville, Radcliff, Elizabethtown, Jeffersontown or Louisville, I know the importance of understanding how a divorce will affect the ownership of a business.
One of the first issues that must be resolved is the nature of the business asset itself. Is the interest in the business going to be considered marital property, the separate property of the business owner or somewhere in between? The central question is this: when did you start the company or obtain the business interest(s) at stake? If you started or invested in a company or professional practice during the time you were married the business interest will most likely be considered a marital asset. If you owned your company or had your professional practice prior to getting married, there is a good chance that most or all of that asset will be considered to be your own “separate” property, as long as marital assets were not used to support your business interests in any way.
Marital property is to be divided “equitably” in a Kentucky divorce. Separate property is usually kept outside of the process of property division.
How to Best Protect Business Ownership or a Professional Practice in a Shepherdsville Area Divorce
There are many issues that complicate the process of how to best protect business ownership in a Shepherdsville Kentucky divorce. If the business asset is considered to be marital property (or commingled with marital funds and interests), the first is usually to establish an accurate valuation of the company or ownership interest itself. There are many ways to appraise or establish the value of any business interest in a Kentucky divorce. The process of business valuation is usually accomplished through expert testimony from a party with extensive expertise in the appraisal or valuation of similar companies or business interests.
What funds were used to acquire the company or shares in the business asset or professional practice? Was it passed down to you as an inheritance, and were those funds kept separate from marital accounts? Did you make sure to keep all of your business accounts completely separate from the marital accounts? Were marital funds invested into the company or professional practice and/or any assets such as equipment or real estate interests?
In complex divorce cases involving a business or professional practice the marital property interest in the company may only represent a small portion of the total valuation of the company, however there may still be a marital interest to be divided.
At the Law Offices of John Schmidt & Associates, PLLC we work with our client’s to protect business ownership in a Shepherdsville Kentucky divorce. We invite you to review our client’s recommendations and reviews and contact us via e-mail, schedule an appointment or call us today at (502) 509-1490 to get answers to your questions and to learn more about your unique circumstances and how to protect what is most important to you in your family law case.
