Valuing and Dividing Business Assets in Divorce
It's not an unusual story: A husband and wife live lavishly off the profits of a business until their relationship ends in divorce. Then the husband (or wife) turns to the couple's tax returns and says the business is losing money.
You may not have been the person who started a business. However, unless there is a prenuptial agreement to the contrary, half of your spouse's business (or half of its appreciation if the business was started before marriage) is yours.
At Corriveau Law in Northville, Michigan, our lawyers will turn to experts such as forensic accountants and specialists in business valuation to ensure that you receive your fair share of a business's true value.
Personal Assets and Business Assets
Depending on the form of the business, whether it is incorporated, a partnership, a sole proprietorship or a limited liability company, business assets can be treated as personal assets and vice versa, especially when the business is closely held. Creative accounting can make profitable businesses look unprofitable. In cash-based businesses, cash can be skimmed and never reported to the Internal Revenue Service.
Creative accounting can also create a financial hardship not only for the soon-to-be ex of the business owner, but also for the children. Child support payments are based on the earnings of both parents.
There are ways to impute business income and uncover profits that are hidden. In one of the cases we handled, the husband owned a car wash and understated his income. Our lawyers hired an expert who tracked the amount of water the car wash paid for and extrapolated that into how much money the business earned. Our argument was successful in court.
Talk to an Attorney at Our Firm
For a free initial consultation about business evaluation with an attorney at our Northville firm, call 248-782-5202 (877-701-4991 toll free) or fill out the contact form on this site.
