Franklin Business Ownership Divorce Attorney
Skilled Business Ownership Divorce Attorneys in Franklin, Tennessee
Divorce is rarely an easy process. It is made even more difficult when it comes to the division of properties, assets, and businesses. It is common for many questions to arise when determining which spouse will hold ownership of a business, as there are many factors that can influence the results. Save yourself the hardship of difficult questions and consult with a Franklin business ownership divorce attorney today. The way in which your assets are divided will depend on a number of things, such as state laws, any preexisting prenuptial agreements, and the marital property characterization of the business, just to name a few.
An Overview of Marital Property
The classification of a business as either separate or marital property can have an impact on whether it’s subject to property division during divorce proceedings. A lot more complexity is involved in this determination than you might think, though – for example, some states consider certain types joint even if the agreement says otherwise.
Property division in Franklin is complicated, but it’s important to know the law. The way you define your property and what happens during the marriage may affect its ultimate distribution after a divorce has been finalized—so make sure that any agreements between parties reflect current legal definitions.
Equitable Distribution vs. Community Property
A crucial step in business ownership divorce settlements is determining whether a divorcing couple lives in a state of equitable distribution or community property. In the case of joint, or community, properties, all assets that have been acquired during the marriage will belong to both parties equally; however, any personal possessions you had before tying the knot are considered separate and cannot, therefore, become part-owned by either party post-separation (unless otherwise agreed upon).
The purpose of equitable distribution is to give you and your ex-spouse the fairest amount according to your specific case. However, this doesn’t mean it will be divided evenly between both parties; instead, there are several guidelines state law requires courts to follow when making decisions about how property should be distributed during divorce proceedings. This is why hiring a lawyer with experience who knows these laws well can make all the difference.
How To Determine If Your Business is Marital Property
The classification of a business as marital property depends on how you start it. This means that if you create your first company after getting married, then all the companies that follow will likely be considered part of your marriage and subject to division by an ex-spouse in some way or another. If your business was started before marriage, you will likely be the sole owner, unless your ex-spouse contributed to the business in some way, such as with their own time or through managing your household.
Using Prenuptial and Postnuptial Agreements to Protect Your Business Ownership
The best way to keep your business out of property division during your divorce is to have a prenuptial agreement in place. If you are entering a marriage with a business already in place, it is wise to instill a prenuptial agreement in order to protect your assets. However, if you have created a business after marriage, a postnuptial agreement will be the way to go. This will allow you to define the parameters of your business and will provide a clear definition of business ownership.
Contact Our Franklin Business Ownership Divorce Attorneys Today
You should not have to deal with your divorce alone. Through all of the varying factors and neverending questions, it is helpful to have someone in your corner to assist you through it all. If you have any questions about business ownership and how divorce might affect it, reach out to our experienced attorneys.