Divorce for Business Owners

For entrepreneurs and those who run a business, a divorce isn’t just the end of a marriage but a complex legal process that can put your life’s work at risk. The business you’ve built often represents your most significant financial asset and a source of deep personal pride. Navigating a divorce requires a strategic approach that protects both your personal well-being and the future of your company.

At Atticus Family Law, we understand the unique pressures business owners face during divorce. We combine proven legal strategy with an appreciation for the nuances of business ownership to protect what you’ve worked so hard to build. Our goal is to guide you through this transition with clarity and confidence, ensuring your business can continue to thrive.

Why Divorce is Different for Business Owners

When a business is involved, a divorce moves beyond typical property division. You face a distinct set of challenges that require a particular set of legal knowledge and careful handling:

• Valuation Disputes: Determining the true value of a business is complex and often contentious.
• Liquidity Issues: A business is not a liquid asset like a bank account, making it difficult to divide without impacting cash flow or forcing a sale.
• Operational Disruption: The divorce process can distract from daily operations and affect morale.
• Future Viability: A divorce settlement must be properly structured to keep from jeopardizing the long-term health and stability of your company.

Addressing these issues requires more than just a standard divorce process; it demands a legal team experienced in high-asset cases involving business structures.

Is Your Business Marital or Separate Property?

One of the most critical questions in a divorce involving a business is determining what portion of it is considered marital property. In Minnesota, assets acquired during the marriage are generally subject to equitable division.

• Marital Property: If you started your business after you were married, it is almost certainly considered marital property. Even if your spouse was not directly involved, their indirect contributions as a homemaker or supportive partner are recognized by the court. The appreciation in the business’s value during the marriage is also marital property.
• Separate (Non-Marital) Property: If you owned the business before the marriage, the initial value may be considered your separate property. However, any increase in value during the marriage due to the efforts of either spouse is typically marital.

Untangling the marital and non-marital components of a business requires meticulous financial tracing and analysis. Failing to do so can result in an unfair division that doesn’t accurately reflect each party’s contributions and rights.

How an Attorney Helps Protect Your Livelihood

A divorce as a business owner is not something you should try to handle alone. The stakes are simply too high. An experienced family law attorney can act as your strategic partner, protecting both your personal and professional interests.

At Atticus Family Law, we guide business owners by:

1. Collaborating With Financial Professionals: We can work closely with trusted forensic accountants and business valuation specialists to establish a clear and defensible assessment of your company’s worth.
2. Structuring Creative Solutions: We explore settlement options that protect your business from being sold or dismantled, such as buyouts over time or awarding other assets to your spouse as an offset.
3. Minimizing Disruption: We handle the legal elements efficiently so you can remain focused on running your business.
4. Protecting Your Legacy: Our ultimate goal is to secure a fair resolution that allows you, your family, and your business to move forward successfully.

Secure Your Business and Your Future

Your business is more than just an asset; it’s a testament to your hard work and vision. Let us help you protect it. Contact Atticus Family Law today to schedule a confidential consultation and learn how we can help you through this challenging time.