In a divorce action, one of the most difficult aspects is that of splitting up the property and assets accumulated between both parties. Dividing separate and marital property can be difficult and can often be a highly emotionally charged process. When there is a business, it complicates things even more. Should one or both parties be involved in a business? What should occur if they are actually business partners?
Regardless of the exact circumstances, it is important that the businesses and partnerships are evaluated so that both parties will be able to part ways with fair amounts – no matter whether the business is being dissolved entirely or not. For this reason, having an experienced attorney can be an invaluable asset as these types of situations require not only legal experience, but also accounting and tax law knowledge to ensure that the accurate distribution occurs. The Heisler Law Group has represented clients before the IRS and has access to IRS enrolled agents that are accountants to assist clients in the IRS impact and evaluation of the business. The firm has also engaged others to evaluate s business.
In many Michigan divorces, one or both spouses will hold ownership of a business or will be a primary shareholder, director, managing member of partner. It, however, is important to realize that not every business is the same. For example, there are several different ways in which a business can be started which will ultimately impact the way that it is split, or not split.
Similarly, the different types of business themselves will determine the type of assets that will be available to be divided – no matter whether this refers to a tangible or an intangible asset. For example, office furniture and solid pieces of property will have a concrete value. On the other hand, something such as a stellar reputation throughout the community, while it might not have a set value, could be infinitely more valuable in the long run for something such as a medical office.
Other factors, such as any debt that was accumulated and is currently owed, will need to be taken into consideration to ensure that the resulting outcome is both fair and equitable. This will also determine who receives the payments first. For instance, a creditor will typically be the first to receive the funds. Following this, investors will be next in line. After them, partners will then be able to receive anything that is left over. The spouse needs to have a competent attorney to assist in this complex area. Here at the Heisler Law Group, we are ready to help in this area.