In many divorces, a critical asset may be a business. Such businesses can range from “mom and pop” businesses that were started and built by both spouses, to professional practices that may involve only one spouse, to larger “closely-held” companies that may have dozens or more employees.
Regardless of the type of business, in a divorce, the business (or the value of the business) may need to be divided. In some cases (especially with a professional practice involving only one spouse), it may be best that one spouse retains the business entirely, and that the other spouse be compensated for his/her share of the value of the business. In other cases, the business can be sold (and the proceeds divided between the spouses), or the spouses continue as business partners.
The division of business assets can be one of the most challenging aspects of divorce, as there can be significant issues concerning valuation of the business, as well as how one spouse may be compensated for his/her share. There is no single approach to dividing a business, or the value of a business, in a divorce. Instead, each case is unique, necessitating a custom strategy that is tailored to the particular situation. At Goldman & Sidgwick, we ensure our clients understand all the available options for dividing their business so that they can determine the best resolution that aligns with their specific long-term goals and objectives.