Dividing Business Assets as Marital Property in Arizona
When one or both spouses holds an ownership interest in a business or professional partnership, the property division issues in their divorce have a way of getting complicated. If the interest was acquired prior to marriage, they can be even more complex.
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For sound advice and confident advocacy on business asset valuation, distribution and characterization issues in your divorce, contact a knowledgeable attorney at Deloughery & Ruotolo, P.C. Our lawyers help entrepreneurs, investors, professionals and self-employed individuals navigate the complexities of business asset distribution in Arizona divorce.
The first step is to make an accurate characterization of business assets as community or separate property. Generally speaking, assets acquired before marriage are not subject to division in a divorce. However, the appreciation in value of such assets during the marriage might nevertheless represent community property. The value of the nonowner-spouse's contributions to the success of the business might affect the equation as well. The terms of a prenuptial agreement will often address business asset characterization issues.
Once we develop a good idea of what's in and out of the marital community, the next step is to arrive at an accurate valuation of the business. Some businesses, such as medical or accounting practices, include good will. Others like contractors or restaurants, primarily consist of business assets such as office furniture, construction equipment or restaurant fixtures. Sharply opposing views as to the correct approach to valuation problems, of course, can arise according to each spouse's motivation to maximize or minimize the value.
Just as in community property division generally, business debts and liabilities will also need to be accounted for in characterization, valuation and distribution problems. Rather than ordering the liquidation and distribution of business assets, the usual practice is for one spouse to buy out the other spouse's interest, either through a lump sum, a series of payments, or concessions with respect to other marital assets.
Reliable Advice in Complex Marital Property Division Problems
At Deloughery & Ruotolo, P.C., our experience with complex property division problems in a wide range of situations can protect your interests in cases involving business assets. We not only explain your legal options in clear terms, we also look for ways to achieve your objectives with a minimum of stress and litigation expense.
To learn how our approach to client service in an Arizona divorce can benefit you in a case involving substantial business, corporate or partnership interests, contact our office in Scottsdale, Arizona.
