Eaton County, MI—When a couple in business together decides to divorce and go their separate ways, it is only natural for them to question what will happen to their business. Will one party maintain ownership over it and the other be left to seek new employment? Can one party buy out the other? Because these are all good questions to discuss with a Michigan divorce lawyer, those who are looking to file for divorce who are in business with their spouse are encouraged to contact the Law Offices of Stuart R. Shafer, P.C.
How are family businesses divided in a Michigan divorce?
If a couple went into business together, there is a good chance they both own an equal percentage of it. Now because Michigan is considered an equitable distribution state, the court will look to divide assets fairly, not equally down the middle. So, if each party in a marriage owns 50% of the business, then the court may award them their 50%. If one party can prove they are entitled to a larger percentage, then the court could potentially award them what they are due.
Now, unless the couple wants to dissolve their business, they will need to decide how it will be run with both owning a percentage of it. And this is something a Michigan divorce attorney can help them work out. If a couple is able to still work together despite the differences that may have led to the divorce, then an attorney can help them draw up an agreement on how it will be run while taking into account what each party’s percentage of ownership is.
What if the couple cannot work together?
If a couple doesn’t want to dissolve their business but is unable to work together, then there is the option of having one party buy out the other. To do this, the couple will want to first value their business to determine what it is worth. Then, the party who wishes to buy the other out will need to decide how much their spouse’s percentage is worth and pay that. This way, they will maintain full ownership of the business.
Deciding what to do with a family business can be difficult during a divorce which is why individuals are encouraged to retain a Michigan divorce attorney who can help them. The Law Offices of Stuart R. Shafer, P.C. is a family law firm in Michigan that helps individuals dealing with certain types of family-related matters including divorce, child custody, and alimony, that can assist those who have questions about divorce or are looking to start the process.
The Law Offices of Stuart R. Shafer, P.C. can be reached at:
1223 Turner Street, #333
Lansing, MI 48906