Jenkintown Closely Held Business Divorce Attorneys
Pennsylvania is an “equitable division” state when it comes to the division of marital property during divorce. Speaking generally, this means the court must decide what constitutes an “equitable division“ of a couple’s assets, retirement funds, and property given the length of a marriage, the earning potential of each spouse, the work history of each spouse, and a number of other considerations. As such, “equitable division” does not mean a 50-50 split down the middle. Consequently, if one or both spouses own a business, the court must determine what constitutes and equitable division of its assets and worth.
Determining the Value of a Closely Held Business
In cases where one spouse owned a business prior to marriage, if marital assets were used to support, maintain, or expand the business in question the court will treat it like marital property. Unless a prenuptial agreement was signed to the contrary, the fact that one spouse started a business and operated it prior to marriage does not exempt it from consideration as marital property. Once marital funds are co-mingled in its operation, it will be considered as marital property.
As a result, a business valuation must be undertaken as part of the division of marital assets. Regardless of whether you’re the business owner or not, you and your divorce attorney will want to have the business valued by an expert in order to protect your interest. Since business valuations can differ, it’s important to have your own expert conduct a thorough review to ensure an estimate isn’t too high or too low. Additionally, depending on the complexity of a business and its operations, it may be necessary to work with a forensic economist to uncover hidden assets associated with a closely held business.
Contact Jenkintown Pennsylvania Divorce Attorneys
If you or your spouse owns a business and your facing divorce, contact Jenkintown divorce attorneys at Joanne E. Kleiner & Associates today. We have worked with countless clients in regard to divorce, property division, and closely held businesses. We understand the financial issues involved and have the resources needed to ensure your interests and protected.