How do courts decide when dividing money earned from business in a divorce?
The value of your business will be determined by the court during a divorce, typically with the assistance of forensic accounting professionals retained by one or both sides. The value may or may not include future earnings, depending on the specifics of the company. To value a company, one can implement a variety of techniques. To choose the best approach to take when valuing your company, you should speak with a professional and your lawyer.
Once the worth of your company has been established, the court will determine the most equitable division of that value in light of the specifics of your case. The court may order you to buy your partner out of their marital share if you plan to retain the company. You can do this by making a direct payment to them or by deducting the value from other marital assets. In certain situations, the court may also order that you and your spouse continue to be co-owners of the company in order to guarantee that both of you obtain your fair share of the marital estate. Even though it’s a possibility, it’s unlikely that the judge will order you to sell the business, particularly if it’s your main source of income.
