Nashville Business Ownership Divorce Lawyer
Experienced Business Ownership Divorce Lawyers Serving Nashville, Tennessee
We have noticed many couples struggle to understand what happens to their business once they apply for a divorce. Will your business be divided between you and your ex-spouse, or will it solely belong to you since you had it before you married? Well, it often depends on several factors.
In case of a divorce, your business will be considered an asset. However, whether it must be divided will ideally depend on your state laws, if the business is characterized as marital property and if you have a prenuptial agreement in place or not, among other factors.
Marital Property: A Quick Overview
The main factor that helps determine if a business is subject to property division during a divorce is its classification as either a separate or marital property. Marital property refers to all joint properties of a couple which can be much more complex than it seems.
Firstly, state laws can affect how you define marital property, generally as community property or property subject to equitable distribution. Secondly, how your property is treated and what happens to it throughout your marriage may also affect how your property is ultimately defined. Contact an experienced Nashville Business Ownership Divorce Lawyer to learn more about marital property and how you can protect yours.
Business Ownership and Divorce: Equitable Distribution vs. Community Property
Determining whether a divorcing couple lives in an equitable distribution state or a community property state is vital. In the case of community property states, all property you acquire during marriage is considered joint property of both parties.
However, any property you had before your wedding will be considered separate. Any inheritances or gifts given to a spouse during their marriage time will be individual property, though commingling it with community property may change its characterization. However, we all know that the law is never this simple, so that you can expect a few exceptions.
In equitable distribution states, your property division is not as straightforward as you may expect since a judge will decide how your property is divided. In addition, the primary idea behind equitable distribution is that the property will be divided between you and your ex fairly, but not equally.
State law has a few guidelines on how a property must be divided between spouses. A professional Nashville Business Ownership Divorce Lawyer can help you reach a fair decision in no time.
When Is A Business Considered Marital Property?
If both you and your ex are co-owners of a business, it will be considered marital property. However, that’s not the only way your business can be classified as marital property. If you start a business after marriage, it’s more likely to be marital property.
All businesses you start before marriage will ideally not be considered marital property. However, this is not always the case. For instance, it can still be considered marital property if the other spouse contributed something to your business during your marriage. It’s vital to note that a contribution can include not only a direct contribution of time but also taking care of your household while you run your company.
Protecting Your Business Ownership Using a Prenuptial Agreement
Laura Blum, a professional Nashville Business Ownership Divorce Lawyer from Rogers, Shea & Spanos, believes that the best way to ensure your business stays out of property division during a divorce is to have an official prenuptial agreement. It is much like a prenuptial agreement, except that it tends to occur after you marry.
There are times when a spouse may start a business after their marriage, in which case including the company in your prenuptial agreement will not be possible. However, it’s still possible for you to acquire a postnuptial agreement that clearly defines business ownership.
Need A Nashville Business Ownership Divorce Lawyer? Contact Rogers, Shea & Spanos Today!
Getting divorced can be complicated, not because of the factors involved but because of all the emotional factors at play. If you have any queries about how a divorce can affect your business ownership or need assistance with any other aspect of the divorce process, it would be best to consult a local divorce attorney immediately. Contact our team at 888-521-9952 to book your appointment right away!