When a small business owner divorces, the business in question can become part of the property fight, creating a stressful situation for everyone involved. Here are the things you need to know if you are a small business owner going through a divorce.
- Sometimes, two former spouses end up forming a business partnership. Since Maryland is an equitable distribution state, you may not have to give up half the business, but a portion of the business could fall into the control of your ex-spouse.
- Liquidation of your business is another possibility where you and your ex-spouse could split the proceeds.
- If the business has increased in value during the time the two spouses were married, the increase in value could be considered marital property. If something is considered marital property, it is subject to be divisible between the spouses.
- If your spouse helped contribute to your business, the business then becomes marital property subject to division.
- If the business was created during the marriage, it also becomes marital property.
If you are a business owner concerned about divorce, Shah & Kishore can help. We have attorneys on staff who hold MBA’s as well as strong finance and economic backgrounds. We advocate for amicable solutions, always keeping your best interest at heart.
To learn more about how we can help you with your particular situation, please email or call us today at (301) 715-3838 to set up your FREE consultation.