How to Divide Family Business Upon Divorce?
|
Summary
How one divides a family business, and the property associated with it, depends on many factors, including the state in which the action is taking place, whether it is a community property state, and what the parties would like to have happen with the business. |
“My husband and I own a dairy farm. We want to get divorced and I wonder how do we split up the assets of the farm quota and everything else we have accumulated over the past 20 years. The farm is in his name under sole proprietorship.”
To a very large degree this will depend on whether or not you are in a community property state. It will also depend on whether the farm was your primary source of income or a side hobby, and what you’d like to have done with the farm. For example, if you want nothing to do with farm, and your husband would like to continue to run it, then it may be that he can end up with the farm, and buy you out of your share by paying you an amount, either up front or over time, equal to your financial interest in the farm.
Farm quotas, goodwill, and other nontangible assets are assigned a value in the process of valuing marital business properties. This can be done by a court-appointed valuator such as an accountant, or by an accountant of your choosing if you can both agree to someone.
In addition, if you live in a community property state, you may be entitled to compensation for any work that you have performed on the farm after the time that you separate.
Recommended reading (click on the picture for details):
|
Get notified whenever ANY new article is posted to DearEsq!:
*We NEVER share your email address with anybody! |
Property Division in Community Property States
After being Divorced for Many Years, My Ex Wants to go Back to Court for Property she Feels she’s Entitled to, Can She do This?
Can My Ex Re-open Our Case and Come Back After My 401k and Pension?
For more on this subject check out these categories: Family Law, Property
Anne P. Mitchell, Esq. is a noted family law expert, Internet law expert, and Professor of Law at Lincoln Law School of San Jose. Contact This Author
State laws vary, and the above is intended as general advice, and not direct legal advice regarding any one particular situation in any one state. For direct personal legal advice related to your own situation you should consult an attorney familiar with the laws of your state and with your situation.
