Divorce and Your Small Business in Jackson, MississippiYour small business is likely your most valuable asset. But, if you are getting divorced, unlike other assets like family cars, jewelry, or even your family home, your small business can be tough to split during a divorce. After all, the value of your small business is so much more than the profits it delivers. Your business is likely the result of years of hard work and sacrifice. Therefore, it might mean so much more to you than its appraised value. After all, you may have devoted years of your life to growing your business. If you are getting divorced in Jackson, Mississippi, and if you have questions about what might happen to your small business, consider reaching out to Malouf & Malouf, PLLC, a divorce attorney in Jackson, Mississippi. How your divorce will impact your business will depend on many factors, including whether you owned your business before your marriage, whether you started your business after you got married, and whether you took steps to protect your business through a prenuptial agreement or through utilizing proper incorporation methods. Malouf & Malouf can review your situation, help you understand your options, and assist you with all aspects of your divorce. Possible Outcomes for Small Business Owners During Divorce in Jackson, Mississippi What are some of the ways that your divorce could impact your small business? It largely depends on how you’ve structured your business, whether you have a prenuptial agreement, and whether you started your business before or after you got married. Here are some of the scenarios that could play out:
- If you owned and ran the business before you got married, and when you got married you signed a prenuptial agreement protecting your business interests, or if you structured your business in such a way that it clearly separated your salary from business assets, then you may be able to keep your business during your divorce. However, rarely are divorces involving small businesses so simple. If your partner played any role in increasing the value of your business and if you weren’t absolutely careful about distinguishing between business or marital assets, your former partner may have some claim upon your business.
- If you owned the business before you got married, but don’t have a prenuptial agreement or didn’t take steps to structure your business when you got married, your former partner may have the right to make a claim upon some of your business assets. He or she may be entitled to some portion of the appreciation in value your business enjoyed during the marriage, because these might be considered marital assets. Any increase in value of assets during the marriage can be considered martial property.
- If, after you got married, you and your partner went into business together or if you started your small business after you got married, you and your partner will likely need to consider how you’ll divide your business, whether you’ll run the business together after your divorce, or whether one of you will sell the business to the other, or sell the business entirely. This scenario can often lead to a complex divorce. Having a divorce attorney on your side like Malouf & Malouf, in Jackson, Mississippi can make a big difference in the outcome of your case and in your claim.
Categories: Distracted Driving