Oakland County Division of Closely-Held Businesses Lawyer
When a divorcing spouse is the owner of a closely-held business, either with other family members or the other spouse, important issues arise as to how that business will be characterized, valued, and allocated in the property division which accompanies the divorce. Unlike other aspects of divorce such as child custody or spousal support, the property division cannot later be modified upon a showing of good cause or changed circumstances.
It is important to be well-represented in the property division during a divorce, especially if the marital property involves complex assets such as a closely-held business. The Oakland County family law attorneys at Clarkston Legal have extensive experience in complex divorce cases, including the division of high-asset marital estates involving closely-held businesses, professional practices and other unique features. Call our office for a free consultation about how to deal with the division of a closely-held business in your Oakland County divorce.
What constitutes a “closely-held business”?
A closely-held business can be a close corporation or any type of business entity where only a very small number of stockholders own all the shares. Sole proprietorships and other single-owned business entities may be considered closely-held businesses as well. Typically, all the stock or ownership interest in a closely-held business is held by close family members, such as spouses, siblings, or parents and children.
A closely-held business may be implicated in the property division of a divorce if the business was acquired after the marriage or enhanced with marital funds. If the business was acquired before marriage or with separate funds after marriage, the business may be considered separate property not subject to division, but involving the spouse in business operations or commingling funds may change the character of the business to marital property that is part of the property division in the divorce.
How is a closely-held business divided?
When both spouses have an interest in a closely-held business, they can deal with the business in the property division in a number of different ways. For instance, one spouse can buy out the other with cash, liquid assets or by giving up other marital property in-kind. Alternatively, the couple can agree to sell the business and split the profits according to their interests. It is even possible for the spouses to agree to continue to operate the business together after divorce. At Clarkston Legal, our Oakland County family law attorneys can help you negotiate a result that best meets your needs. If an agreement can’t be reached, our experienced divorce lawyers are staunch and effective advocates for you in the courtroom.
Clarkston Legal has Experienced Family Law Attorneys Ready to Help
To discuss how to handle a closely-held business in your Oakland County divorce, call Clarkston Legal at 248-886-6600 for a free consultation with an Oakland County divorce lawyer skilled and knowledgeable in complex property division.