People who own small businesses rely on their business as their major source of income. Those who find themselves in the midst of a divorce may worry about what will happen to their business. The divorce process can be complicated which can get even more challenging if the couple owns a small business.
North Carolina is an equitable distribution state which means that any marital property, including a small business, should be divided equitably. If you own a small business owner and are in the middle of a divorce, you should consult a charlotte family law attorney to guide you through the divorce process. Your attorney will help you determine your options to protect your business and income.
What is Equitable Distribution
In North Carolina, all property obtained during the marriage is subject to an equitable division, which does not necessarily mean an equal split. Any assets a couple acquired before your marriage are considered separate property and not subject to equitable distribution. Also, if there a prenuptial agreement that lists your business as your asset, your business may be part of your divorce proceedings. Your lawyer will review any prenuptial or postnuptial agreement and determine what’s subject to equitable distribution. If the court considers your business as part of the divorce proceedings it considers your business’ legal structure, any business assets acquired during your marriage, and the role of every spouse in the business.
If you and your spouse agree, the business may be split in any way you want. If you don’t agree, the court may let one spouse keep ownership of the business and buy out the other spouse. This can be a one-time lump sum or through payments to minimize the financial burden. Another way the business can be split is by selling it and splitting the proceeds between the spouses. Also, you and your spouse can continue to operate the business together after the divorce.
Working with an Experienced Family Attorney
If you want to protect your small business through your divorce, you must hire a skilled attorney who will fight to protect your business and future. This way, you can concentrate on running your business while your lawyer handles your divorce negotiations. A good family law attorney will educate you about your legal options and keep your best interest in mind, ensuring you get what you deserve from the division of property during your divorce.