Options for Business Owners Going Through a Divorce in Arizona
Some people going through a divorce in Arizona ask what is the process of dividing a business in an Arizona divorce. At the point when a couple goes through separation, resources and liabilities are also divided equally through a procedure called Equitable Distribution.
Basically, a court will order property as either community or separate, put a price on the property, and afterward allot the property among the spouses.
However, some kinds of property are less challenging to distribute than others. For example, if the couple has a vehicle, both of them will likely keep their separate vehicles. Similarly, other types of property are harder to evaluate equally, such as the marital residence.
To divide the home, the parties may consent to sell the house and split the equity. In any case, if one party is willing to stay in the house, then they will need to purchase the other spouse out.
Different sorts of property can be significantly harder to divide. A good example is when there is a business. These few techniques are the most basic courses for spouses to divide a business in a divorce. There are upsides and downsides to every technique that the parties ought to consider before choosing a strategy for circulation.
The most widely recognized technique utilized is where one spouse purchases the other spouse’s community property interest in the business. It works if the purchasing partner has enough money to buy out the other spouse.
Generally, in this circumstance, the purchasing spouse will simply pay the other spouse a lump sum amount. In other cases, couples may consent to a payment plan over time.
Remember that the purchasing spouse doesn’t really need to have enough money in order to transfer the buyout if there are other fluid resources. The purchasing spouse could likewise think about offering another asset if he or she didn’t have enough money to give the other spouse.
Another approach to convey a business resource is to keep possessing the business jointly even after the separation. If both partners need to continue running the business, they could continue to co-own and run it despite the fact that they are divorced. Another variant of co-ownership may exist where one spouse keeps on maintaining the business while the other spouse agrees to receive installment payments from future profits to pay for his or her interest in the business.
Sell the Business
In some cases, it may make more sense to sell the business and divide the proceeds. If the business is not particularly profitable, it might take a lot of time to find a buyer. Likewise, it may not be the best choice if the spouses differ over the estimation of the value of the business.
We would like to thank John Menzel, J.D. for contributing this article. Mr. Menzel and his firm defend people charged with drunk driving and related offenses in New Jersey.
If you have questions about dividing a business in an Arizona divorce case, you should seriously consider contacting the attorneys at Hildebrand Law, PC. Our Arizona community property and family law attorneys have over 100 years of combined experience successfully representing clients in community property and family law cases.
Our family law firm has earned numerous awards such as US News and World Reports Best Arizona Family Law Firm, US News and World Report Best Divorce Attorneys, “Best of the Valley” by Arizona Foothills readers, and “Best Arizona Divorce Law Firms” by North Scottsdale Magazine.
Call us today at (480)305-8300 or reach out to us through our appointment scheduling form to schedule your personalized consultation and turn your Arizona community property or family law case around today.
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Chris Hildebrand is providing the information on this page about options for business owners going through a divorce in Arizona to ensure everyone has access to information about family law in Arizona. Chris is a divorce and family law attorney at Hildebrand Law, PC. He has over 24 years of Arizona family law experience and has received multiple awards, including US News and World Report “Top Arizona Divorce Attorneys”, Phoenix Magazine “Top Divorce Law Firms”, and Arizona Foothills Magazine “Best of the Valley” award. He believes the policies and procedures he uses to get his clients through a divorce should all be guided by the principles of honesty, integrity, and, quite frankly, actually caring about what his clients are going through in a divorce or family law case. In short, his practice is defined by the success of his clients. He also manages all of the other attorneys at his firm to make sure the outcomes in their clients’ cases are successful as well.