Being a business owner can add an additional layer of complexity to divorce in Hartford, CT. There’s a lot at stake, because your business is more than just a source of income; it represents your life’s ambition, as well as your financial future. You need legal guidance that can not only help you effectively protect your business, but navigate the intricate nature that being a business owner can bring to other aspects of your divorce, like asset division, child support, and spousal maintenance.
The Freed Marcroft Divorce & Family Law Team understands the concerns you have for your business – you’ve worked too hard to build your brand and reputation for it to be left without proper protection while you undergo one of the biggest transitions of your life. We get it, because we’re high-achievers, ourselves. We play all in on life, and we find that our best clients do, too.
You can trust our firm with your business, your divorce, and your future. Call today to request a meeting with a member of our team and learn more about divorce for business owners in Hartford.
Common Pitfalls In Divorce For Business Owners In Hartford
There are many unique issues that business owners encounter in divorce. Each couple is different, as is their divorce, and the business that’s at stake. You’ll need to arm yourself with the knowledge and insights required to navigate divorce for business owners in Hartford. This may involve seeking the aid of experts, like forensic accountants and financial professionals, as well.
Freed Marcroft is seasoned in helping business owners make decisions regarding:
- Estimating the value of the business
- Precise business valuation is crucial to ensuring an equitable division of assets, and there are various methods that can be used to do this (income approach, market approach, etc.).
- Dividing the business assets
- Connecticut is both an “all property” state, as well as an “equitable division” state, so you must be careful to consider this as you make decisions regarding the division of business assets.
- Shielding business interests
- Protecting your business from being split, sold, or otherwise harmed by the divorce proceedings is vital to the lifespan and prosperity of the business, and may involve strategies such as prenuptial (if applicable) or postnuptial agreements.
- Managing business debt
- Deciding how the obligations for unpaid loans, leases, or other liabilities will be divided is essential for both spouse’s financial future.
- And More.
Legal Aspects For Business Owners To Consider
Other aspects unique to divorce for business owners in Hartford include:
- Spousal involvement in the business
- The court will examine how much the non-owner spouse’s contributed to the business and what their ownership stake is, so distinctly outlining their role and responsibilities within the business early on can help minimize conflicts and ensure a straightforward transition.
- Impact on business operations
- Divorce can often lead to disruptions in business operations, so it’s important to have a strategy in place to uphold continuity, such as delegating responsibilities to trusted employees or partners.
- Tax implications
- Different settlement options (such as buyouts, asset division strategies, spousal support arrangements) will have vastly different tax implications, so be sure to consider these as you’re working through your divorce. It may be necessary to enlist the aid of a tax expert.
- Spousal maintenance and child support
- Business profits will have an impact on spousal maintenance and child support obligations, so be sure to keep this in mind when seeking a resolution to these matters.
Divorce Pathways For Business Owners
Mediation and collaborative divorce are often the preferred methods of resolving divorce matters for the business owners, or spouses of business owners, we work with. These alternative methods of dispute resolution are typically favored over traditional litigation because the couple’s privacy is protected and the details of their divorce are kept out of public record. However, litigation can also be beneficial in some cases, as the outcome is more definitive.
Our team will help you fully understand your options and work with you to ensure you choose the path that will put you as close to your goals as possible.
Freed Marcroft Will Fight Hard And Smart To Protect Your Business, Your Money, And Your Future
With the right legal support, you can face divorce as a business owner in Hartford with maximum protection. Not only are we a top-rated divorce and family law firm in Connecticut, but we have experience in the corporate world, as well; our managing co-partner Meghan Freed is a former financial planner and began her legal career as a complex financial litigator.
Divorce for business owners is not just something we do, it’s something we thrive in. When the stakes are high, we take charge with a strategic approach to put your goals within reach. Call today to request your initial consultation and learn what comes next.
Frequently Asked Questions About Divorce For Business Owners In Connecticut
What if my business was inherited or gifted to me?
Any assets that are inherited or gifted are typically considered separate property, but there are important nuances involved that could affect this, such as whether the business remained distinct from marital assets, if marital funds were commingled with the business, and if your spouse contributed to the growth of the business.
How can I protect sensitive information about my business during divorce?
We’re well familiar with divorce for business owners in Hartford, so we understand how important it is to protect your financial records, trade secrets, client lists, proprietary data, and other critical information. Some strategies we can implement include confidentiality agreements, protective orders, limited discovery requests, and more.
What if my spouse tries to sabotage my business during the divorce?
If your spouse makes any moves to sabotage your business during the divorce, we will take immediate action to protect your interests. This may include filing motions with the court to request temporary orders that prevent your spouse from accessing business information or making any moves on behalf of the business.
