Dividing Your Business in a Tulsa Divorce can be the most difficult asset to deal with in divorce. In many ways starting a business is as emotional as getting married. Just like when you first got married and poured your heart into the marriage the same thing applied to starting the business. Countless hours and endless dollars goes in the business with its success never really guaranteed. Add the nightmare of a divorce to running your business and its further complicated. If dividing your business in a Tulsa divorce is a problem you’re facing read on for possible helpful insights.
Is it Separate or Marital Property
The distinction between marital and separate property in a divorce is critical. If its property you acquired prior to the marriage its considered separate property. Or if its property acquired after the marriage, its generally considered marital property. If its considered marital property its subject to division. On the other hand, assets acquired before the marriage are separate property and not subject to division.
Sounds easy but, not so fast. Lets say you own a house before you get married. You take out a mortgage buy the house and that’s that. You get married thinking the house is premarital so its separate. The problem is that any money you put into the house after your married is marital money. Its marital money because one of you earned it while you were married. When you take the marital money and use it to pay the mortgage you’re commingling the marital funds with a non-marital asset. In time this acts to transform otherwise separate property to a marital asset.
If we take the example set out above and apply it to your business its similar. First we look to when you started the business. After that we look to how the business was funded. Are you making payments on the business out of marital assets or was it paid off before you got married. After you were married did you both run the business together and did you invest any money in the business after you were married. As you can see
dividing your business in a Tulsa divorce isn’t always a bright line decision.
How Does Family Court Value The Business
Valuing a business is done using several different accounting methods What the Family Court in Tulsa does depends on the arguments we make. What arguments we make depend on the strength of your case. In some instances the court may look to the total assets of the business. If this is what the family court does than we simply divide the asset value between you. Other approaches look to the yearly net profit of the business. Still other valuation models include the good will built up in the business.
Call a Tulsa, Ok Family Attorney Near You
If you’re facing divorce and you own a business, dividing your business in a Tulsa Divorce is a huge concern. We help you find the best way to maximize your interest in the business. Deciding issues related to divorce and perhaps child custody are hard enough. Call our dedicated Tulsa lawyers for a free and absolutely confidential consultation (918) 743-2233