How to Divide Family Business Upon Divorce?

Note: The DearEsq free 'ask a lawyer' site is offered as a free informational service to the public and is not intended as legal advice. Laws vary from state-to-state, and in addition every situation is unique, and relevant facts may not be known. The answer to the question posed below may not apply to in your state or to your situation. For legal advice in your state and your situation you should consult with an attorney in your state who is familiar with the rules and laws in your state.

“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.

Question: 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.

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