When spouses with significant marital assets go through a divorce, their financial future is at stake and securing a favorable property division is a key priority. Divorces where one or both spouses own a business are especially complex and require a family law attorney who is experienced in the valuation and distribution of business assets. The Law Office of Randy S. Margulis in Williamsville and Buffalo understands that thorough valuations, consultations with financial experts and tenacity are essential to successfully protecting the financial interests of clients when business ownership is on the line.
In divorces in which business ownership might be classified as marital property, it is critical that your attorney facilitates an accurate valuation before asset division is decided. Business assets typically are categorized as either tangible or intangible. Tangible assets include items you could sell or liquidate, such as properties, equipment, vehicles, stocks or cash. Intangible assets include intellectual property and goodwill.
Especially in cases concerning high net worth marital estates, an experienced family law attorney may work with an accountant or someone else with financial expertise who can review and analyze information about business holdings and operations. A professional valuator may consider the company’s cash flow, balance sheets and owner equity when making an appraisal.
If one spouse started their business prior to the start of marriage and the other spouse had no ownership or involvement during the course of the marriage, the business itself might be considered separate property. However, the appreciation in value that occurred since the couple wed could become part of the marital estate.
Certain considerations may affect how a court would characterize business assets in an equitable distribution analysis, including:
Like each business, each divorce is unique, so it’s wise to speak with a knowledgeable lawyer about your options before deciding how to proceed.
Call the Law Offices of Randy S. Margulis today at 716-886-9600 or contact our firm online to schedule an initial consultation regarding the division of business shares and other aspects of your divorce. From our offices in Williamsville and downtown Buffalo, we represent clients living throughout Western New York.
As a Buffalo divorce lawyer for 28 years, I have devoted myself to solving the problems that affect families throughout the Buffalo metropolitan area and Western New York. As a family law attorney, I make it my goal to create a partnership of trust with my clients. People put their trust in me to handle cases that can potentially have a long-lasting impact on not only their lives, but the lives of their family as well.
Alexandra M. Rockwood is a Senior Associate Attorney with the Law Offices of Randy S. Margulis & Associates and has been with the firm since early 2020. She primarily practices in the areas of matrimonial and family law, including divorce, child custody, and child support. Alexandra is a practicing matrimonial and family law attorney as…