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Divorce For Business Owners In Rochester

The divorce process is unique for everyone, and the process will only be as complicated as the assets involved and the couple’s willingness to collaborate. While a family business can make your divorce more complex than it needs to be, there are avenues available for Minnesota residents looking to move forward and defend their business.

At Navarro Law Firm PLLC, founding attorney Dominique J. Navarro strives to advocate for business owners in the Rochester area who are considering divorce. Dom has profound knowledge about how a divorce can impact business owners and he will fight to ensure your business is accurately valued and its assets are divided fairly.

How Are Business Valuations Calculated?

Determining an accurate monetary value for the family business will often be a source of conflict at the start of the divorce process. Fortunately, there are a few common methods used to calculate the worth of the business, which are as follows:

  • Market approach: This method compares the business to other similar companies that have recently sold to determine an accurate value.
  • Income approach: Appraisers will calculate the company’s future earnings and use that estimation to establish its current value.
  • Asset approach: With this method, the appraiser will aggregate the business’ assets and liabilities. Then they will take the total amount of liabilities and subtract that number from the company’s assets.

Each of these methods is a common and fair way to determine the value of a business. With guidance from a legal professional, you can select the best method for your situation and future.

What Happens When Business Owners Divorce?

When business owners decide to part ways and end their marriage, countless complications often begin to arise. The main complication will be dividing the marital assets, which includes any family businesses. Regardless if the business was established prior to the marriage or afterward, it will be considered a shared asset and be subject to division.

Can My Ex-Spouse Take Half Of My Business?

Any property, money or businesses acquired during a marriage will be deemed marital property as both spouses have a shared interest in the asset. This also includes assets that were acquired before the marriage, unless both spouses established a prenuptial or postnuptial agreement.

Prenuptial and postnuptial agreements can benefit spouses in numerous ways, such as limiting the possibility of conflict, protecting their business from division and reducing the financial impact of divorce. Divorcing business owners without an agreement may face challenges that could have been avoided. In this situation, contacting a legal advocate may be the best route to take.

How Navarro Law Firm PLLC Advocates For Business Owners

A few things can complicate a divorce, such as family business. But, spouses who take the time to obtain legal assistance can protect the business they have built. If you need support and help to protect your business, contact Navarro Law Firm PLLC by calling 507-923-2190 or by completing the online form.