Divorce can be challenging, but when you or your spouse (or you and your spouse) are business owners, reaching an agreement on the issues involved with divorce (such as alimony and custody) and dividing assets can be particularly complicated.
The stakes are high, because your business not only represents your life’s purpose and passion, but your financial future, so you need a team of exceedingly experienced divorce lawyers on your side who are also deeply familiar with the intricate nature of divorce for business owners in Connecticut.
At Freed Marcroft Divorce & Family Law, our practice is solely dedicated to divorce and family law in Connecticut, so we are exceptionally seasoned in the nuances of divorce for business owners, as well as the Connecticut courts. You won’t find a more capable team to help you achieve your goals, because we are high-achievers who play all in.
Our firm truly cares about getting you to the post-divorce life you desire, which is why we first take the time to get a clear picture of what that looks like. Then, we will develop a strategy rooted in your goals and customized to reflect what matters most to you. Call today to book your first meeting with Freed Marcroft and take the next step.
Common Challenges In Divorce For Business Owners
When business owners go through divorce, they may encounter unique issues because of the added complexity of a business with its own unique characteristics. Navigating these challenges requires a careful and informed approach, often with the help of financial experts like forensic accountants.
Freed Marcroft can assist you in making decisions regarding:
Assessing the value of the business
Accurate business valuation is essential to ensuring a fair division of assets, and there are multiple methods that can be used to do this (income approach, market approach, etc.).
Division of business assets
Connecticut is both an “all property” state, as well as an “equitable division” state, so this must be kept in mind as you make decisions regarding the division of business assets.
Protecting business interests
Protecting the business from being split, sold, or otherwise harmed by the divorce proceedings is critical to the lifespan and success of the business, and may involve strategies such as prenuptial (if applicable) or postnuptial agreements.
Managing business debt
Determining how the responsibility for outstanding loans, leases, or other liabilities will be divided is important for both spouse’s financial future.
And More.
Legal Considerations For Business Owners
Other aspects unique to divorce for business owners in Connecticut include:
Spousal involvement in the business
The court will assess how much the non-owner spouse’s contributed to the business and what their ownership stake is, so clearly defining their role and responsibilities within the business early on can help avoid conflicts and ensure a smoother transition.
Impact on business operations
Divorce can often result in disruptions to the business operations, so it’s essential to have a plan in place to maintain continuity, such as delegating responsibilities to trusted employees or partners.
Tax implications
Understanding the tax implications of different settlement options – such as a buyout, division of assets, or spousal support – is critical to making informed decisions.
Spousal maintenance and child support
Business owners need to be particularly mindful of how their business income will affect spousal maintenance and child support obligations, as courts will typically consider all sources of income, including business profits, when determining payments.
How To Approach Your Divorce If You Or Your Spouse (Or Both Of You) Are Business Owners
Most clients we work with who own a business or are married to a business owner prefer to resolve their divorce matters through mediation or collaborative divorce, as opposed to litigation. This is mostly because they prioritize confidentiality and want to keep their personal circumstances out of the public eye. Each option has its own distinct benefits depending on your situation, but our team can work with you to understand each pathway so that you can make empowered decisions.
Freed Marcroft Has Helped Countless Business Owners Face Divorce With Confidence, And We Can Help You Too
With the right legal aid, you can have peace of mind that your business, finances, and future will be protected in the face of divorce. Our Managing Co-Partner, Meghan Freed, is a former financial planner and began her career as a complex financial litigator. Divorce for business owners in Connecticut is something she – as well as our other attorneys – excel in.
You can trust that your case will be in the best possible hands with our team. Call us today to schedule an appointment, get your questions answered, and start building a picture of what you want your future as a business owner to be like.
Frequently Asked Questions About Divorce For Business Owners In Connecticut
Connecticut is an “all property” state. What does that mean?
The courts can divide any and all property owned by both spouses, regardless of when or how it was acquired.
Connecticut is an “equitable division” state. What does that mean?
Equitable division does not mean equal division – rather, it emphasizes fairness over all. That being said, the court has substantial discretion when it comes to determining what is “fair.”
Does the spouse who files for divorce first gain any advantages?
In divorce for business owners in Connecticut, the court does not read into which spouse filed first.
