Published November 7, 2023, by TheStreet
When a family-owned business is involved, making sure there is a fair distribution of marital assets, including the business, requires careful planning and the assistance of legal counsel.
If your business is categorized as a marital asset, it will be valued and distributed like any other asset. In other words, the business will be valued and, in most states, the value will be equitably distributed between you and your spouse.
If you want business assets — such as real estate, equipment or vehicles — to be divvied up in a divorce, then you must name the business as a party in the divorce. Some spouses are satisfied with getting their share of the value of the business in cash.
Philip Herzberg, our lead financial advisor at Team Hewins, shares some considerations for what steps should be taken when a business is an asset in a divorce.