Dividing Business Interests In A Michigan Divorce
As a business owner, you understand the complexities of your company and how to run it. However, if you are getting divorced, it’s crucial to have a lawyer who understands the intricacies of the law to protect your business.
I am attorney Jessica Lashier, and I started my firm, Lashier Law, PLLC, in Macomb County to provide the legal counsel and support you need during this challenging time. Let my team handle the legal details so you can focus on what you do best – running your business.
Securing Fair Outcomes In Divorces Involving A Business
As a skilled advocate for business owners, I am committed to reaching fair outcomes in divorces involving businesses and other family law matters. I understand that your business is not just a financial asset but also a reflection of your hard work, dedication and passion.
When it comes to the division of business interests, several factors will dictate what should happen, including ownership rights, roles and contributions. Potential outcomes may include:
- One person retaining ownership of the business as separate property
- One person buying out the other’s share
- Selling the business and dividing the proceeds
- Continuing to own the business together
- Single ownership with the other party receiving a portion of the proceeds
Every situation is unique, and I’m committed to finding creative solutions that work for you. My experience in divorces involving businesses allows me to think outside the box and develop strategies that protect your interests.
Is An LLC Protected From Divorce?
Forming your business as a limited liability company (LLC) has several advantages. However, those benefits do not extend to protecting your interest in the business in a divorce.
In Michigan, the courts treat an LLC like any other asset during a divorce, meaning it is eligible for division if it is marital property. Factors that dictate this include when you started the LLC, each person’s contributions and where the money for the business came from. It’s essential to understand how these factors will impact the division of your business assets.
What Factors Affect Business Valuation In A Divorce?
As with any other asset, you must assign value to a business when dividing property. However, the valuation process can be far more complicated than valuing assets like personal property or real estate. Several factors will influence valuations, including:
- Growth potential
- Assets and liabilities
- Financial performance
- Industry and market conditions
- Profit margins
- Cash flow
- Size of business
Based on these and other components, legal and financial professionals can use various approaches to assigning value to a business:
- Asset approach: Values the business based on its assets
- Market approach: Uses comparable sales data for similar companies
- Income approach: Considers the business’s profits and earnings
The valuation process is complex and requires a deep understanding of various factors and valuation methods. My experience in this area ensures that your business is accurately valued, protecting your interests during the division of assets.
You Know Your Business, I Know How To Protect It
You know your company inside and out, but when it comes to protecting it during a divorce, you need a team like mine with the knowledge and experience to safeguard your business interests. Call me today at 586-219-1984 or schedule a consultation to learn how I can help.