How to Divide Family Business Upon Divorce?

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“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.”

[NOTE: Articles and answers on DearEsq., while written and published by lawyers, do not constitute legal advice, and no attorney-client relationship is formed by your reading of this information. You should always consult with an attorney for any legal situations.]

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):
Divorce and Money : How to Make the Best Financial Decisions During Divorce



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Author: Anne P. Mitchell, Esq.

Anne P. Mitchell, Esq. is a noted family law expert, Internet law expert, and Professor of Law at Lincoln Law School of San Jose. She is the author of "Surviving Divorce: the Single Father's Guide" and "The Email Deliverability Handbook"

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