Getting divorced is stressful, but if you own a business in North Carolina, you have even more cause for concern. It’s important to know how your divorce might affect your business.
Is your business considered marital property?
If you own a business and are getting a divorce, you might worry that your business will be subject to property division as part of the settlement. However, unless you and your spouse co-own the business, you won’t have to share the business itself with them. Also, if you started the business before your marriage, you won’t have to worry about paying your spouse any value from it.
Your business is only considered marital property if you formed it after the marriage took place. In that situation, you would have to share a portion of the value of your business with your spouse as part of your divorce settlement.
How could a business be affected by divorce?
Even if your spouse is not a co-owner of your business, your daily operations could be affected by your divorce. It’s normal to have a lot on your mind and plate while going through a divorce. This could end up impacting your ability to run your business normally. If your spouse has a stake in the business in any way, it could complicate things even further.
Your business finances can also be affected by your divorce. Your spouse is entitled to a portion of the total value of your business if you founded it after getting married. This is especially true if your spouse supported you while you started it whether you attended school or training to create the company.
In that scenario, it may be a good idea to hire a financial specialist who could determine the value of your business so that your spouse could receive their share as part of your divorce settlement.
Divorce can be messy when you own a business. However, it doesn’t have to be overwhelming.