Small business fuels more employment in the United States than larger corporations and businesses. It is often the case one spouse works for a company to obtain benefits like health insurance, allowing the other spouse to start and run a small business—a part of the American dream. When a divorce is filed, the parties are often left with determining what makes up the small business’ value, as all marital assets acquired or brought into the marriage and existing at the time of filing are marital assets subject to a fifty-fifty division. This blog covers the basics of how and what ...
December 18, 2020CD
In order to assess the value of a marital business or professional practice for proper consideration by a trial court in a trial, a business valuation is almost always called necessary; there are very advanced tools to assist in determining the value of a business that is utilized by business valuators. Knowing the best litigant is one who is informed, this blog covers three central parts of a business valuation; these individual components may have value outside the business itself, for either party: Market Value. The market value of the business is the bottom line of an evaluation and is based ...
April 7, 2017Adam Hayes
In many cases, a martial business ranging from a minority stock ownership in a business, such as a car dealership, to a physician practice, may be a large source of marital income. However, when a divorce is filed, there are three major problems a spouse may face with such in maintaining what he or she believes is a just and equal division and maintaining a lifestyle as if the divorce had not occurred. This blog addresses three key problems in high-asset divorces or where there are high-income earners. First, with certain businesses, the value of the business is the goodwill of ...
February 9, 2017Adam Hayes
In Indiana, all marital assets, except as otherwise excluded by law, are part of the marital estate a trial court can divide upon divorce. There is a presumption of an equal division (assets – liabilities). However, with certain professionals, this division is complex because of the complexity of what they do. This blog explores these concerns and some resolutions. Perhaps, and first, with professionals who own a business or are involved in a practice (medical, dental, law). The value of business in terms of what it could be bought or sold for varies widely from almost nothing to significant amounts. For ...
February 23, 2016Adam Hayes
Small business is the engine that drives America. Often times divorce attorneys face a scenario where parties are divorcing and the means of income that has provided for the family is the small business. An example would be a doctor, lawyer, or landscaper. The obvious assumption most of us would make is that this would continue to be the source to maintain the parties (and their children) after the divorce. However, sometimes this is not the case. There are three key points to consider if you have a family business and are contemplating divorce. First, a business entity (except a sole ...
September 30, 2015Adam Hayes
Many previous blogs have examined the child custody and support aspects of family law and divorce, as these issues are often paramount in domestic proceedings. However, property division and valuing property for division are also contentious and important issues in most divorce proceedings. Indiana statutes provide for equal division of assets and liabilities in a divorce.1 This presumption of equal division can be deviated from if a party presents relevant evidence that an equal division would not be just and reasonable.2 Some types of evidence to show equal division would not be just and reasonable include evidence regarding property acquired through ...
May 30, 2013CD