A high-asset divorce can be more challenging than divorces that do not involve complex or high-value assets. It is important for divorcing spouses with a high net worth to be familiar with how they can protect their interests during the property division process.
High asset divorces may require forensic accounting, valuation experts and appraisers to ensure that a fair division of property is achieved. One asset that may be especially challenging for divorcing couples is a family-owned business. Divorcing couples who share a business should be familiar with the different options available for them to divide their business as part of their divorce and property settlement agreement.
There are several different options for dividing a business during divorce and which one is best depends on the situation and goals for the divorcing spouses. One option is for the divorcing couple to sell the business and split the proceeds from the sale. This option may delay the completion of the couple’s divorce while they await the sale of the business. Another option is for one spouse to buy the other spouse’s interest in the business out based on the appraised value of the business. If the spouse wishing to purchase the other spouse’s interest does not have the funds to do so, a structured settlement may be an option to consider.
Lastly, and most uncommon, is for the divorcing couple to each retain their interest in the business if they believe they can continue to work together following the divorce. Divorcing couples have a lot to think about and divorcing couples who own a family business may have even more to consider during their divorce. Fortunately, the family law process provides them with tools to reach a divorce and property division settlement agreement they can both live with and that addresses their concerns.