When couples in Arizona divorce, they have to divide their property according to community property law. If spouses operated a business together, divorce proceedings may become complicated.
Here are factors that affect how couples may divide their business during a divorce.
Is the business a marital asset?
During the divorce proceedings, spouses have to determine how much of the business is a marital asset. The American Bar Association says to do this, the couple will have to assess how much money and effort each of them contributed to the business over the course of the marriage. Additionally, they must consider whether one spouse owned the business before the marriage took place.
How much is the business worth?
As spouses divide a business, they will have to find out how much the business is worth. They must consider the income the business generates, as well as the value of the business assets. They may also need to look at market forces to determine the value. This helps spouses understand what a fair division of the business may look like.
What is a fair division?
Some spouses may decide that they can both keep their interest in the business. Forbes says that this solution typically works well if the couple can work together peacefully.
If a divorce is not amicable, couples may look at other solutions. They might decide to sell the business and divide the proceeds between them. This option may make divorce proceedings take longer, as it may take a while for them to find a buyer. Or, one spouse may buy out the other.
When you are ready, contact our Chandler divorce lawyers.