How equitable distribution can affect your business
In Maryland, property distribution involves equitable distribution of marital assets. This does not necessarily mean your business assets, operations, or other property will be divided equally. If the business is family owned and operated, and was acquired during the marriage, its division is inevitable. If it was acquired by one spouse before the marriage, then it is possible that only the assets and debts accrued during the length of the marriage would be divisible. If there is a pre-nuptial agreement in place to protect the business, the Court will follow the plan set forth within it. Business assets you will want to protect and consider include:
Proper valuation is essential for appropriate distribution of your business
Your first step in this process will be to hire a professional appraiser to evaluate the total assets and viability of your company. This is key to tangibly demonstrate the value of your business, which will be crucial in your divorce proceedings. A full valuation will consider both physical and abstract assets of your company, including things like reputation within the community, as well as any partnerships that have been established with other businesses. Only when you have an accurate picture of appraised value of your business is it possible to finalize your business asset division. Maryland courts seek to equitably divide marital property. Depending on the desires of you and your spouse, you need to be prepared to avoid a situation where splitting of the business assets disproportionately affects your ability to continue earning income. These are common issues for a skilled Annapolis divorce attorney, and you will want counsel that is capable of defending your interest in your business during your divorce. Decide what you want your company to look like after you are divorced, including who will take on certain roles — and whether this includes your spouse or not.
The process of fairly distributing business assets must begin with questions such as:
