Baltimore County & Towson Divorce Lawyer | Marital Property | Marital Businesses.
Top Law Firm Protecting Baltimore & Towson Marital Businesses.
Businesses established and/or developed during the marriage may be marital property and are often the largest assets in the marriage. Typical examples of marital businesses include:
- Medical practices and dental practices including partnerships.
- Insurance agencies, tax preparation businesses, and travel agencies with goodwill.
- Restaurants and bars including franchises and liquor licenses .
- Fabrication/Tool and Dye companies, such as those in Eastern Baltimore County.
- IT Consulting Businesses and limited partnership (LP) interests.
Business valuation is an intricate process. There are factors beyond revenues, profits, and losses. When valuing businesses, one of the thorniest issues that arises is determining the value of the "Professional Goodwill" that characterizes a business. Professional Goodwill is acquired over time and refers to the reputation of a business, repeat customers, the benefit that a business has as the result of retaining a skilled workforce (that does not need to be trained again), the cumulative effect of advertising to give a business its name in the community.
What Impact Can a Divorce Have on Your Baltimore County Business?
Under Maryland law, all property obtained during the marriage is considered marital property. So, what does that mean exactly? It means your soon-to-be ex-spouse will, in all probability, be able to claim a portion of your interest in your business. There are some exceptions to the rule, however, and the scope of your spouse’s interest will depend greatly on several factors. Such factors include, but are not limited to:
- Restrictions on your interest that may be imposed by documents governing the business
- Non-marital or premarital claims you might have to your business interest
- The value attached to your interest in the business or in the business itself
It is important for divorcing individuals who own businesses to keep in mind that if their business interests were obtained before the marriage, particularly by gift or inheritance, they may be able to defend against their spouse’s claim. Still, if there was an increase in the owner’s interest in the business during the marriage, the spouse may have a claim if the increase occurred because of the owner’s time and effort put into the business.
Protect Yourself By Retaining a Top Towson Divorce Lawyer & Family Law Firm.
Contrary to what you might think, there are ways in which business owners can protect themselves from the harsh realities associated with divorce. One thing owners can do is take inventory and understand exactly what is at stake. Whether it’s via a judge’s ruling or an agreement, you and your soon-to-be ex will reach a monetary determination with respect to your spouse’s claim to business interest.
That is why it is important for you to have a clear understanding of that value as soon as possible once you know the divorce is inevitable. Business interest values can vary based on the size and type of business you have, your experience and skill level and data related to similar or comparable businesses that have been sold.
It is also important for business owners to ensure their books are in order. This is especially important in the case of divorcing business owners because both their business and personal financials will be closely reviewed.
That said, business owners who are in the midst of divorce proceedings are encouraged to work with knowledgeable lawyers who will be able to properly review and advise as to how their business records may be construed.
Having a reliable and trustworthy Towson Family Law Lawyer. by your side as you deal with trying to protect your interest can prove to be invaluable in the long run. The claim that your spouse can make against your business interest may be greater (or lower) than you expect. That is why it is wise to gain some perspective on the possibilities during the early stages of the divorce.
Call 410-321-4994 For a Free Consultation With Towson Divorce Lawyer Amar S. Weisman.
Please Call (410) 321-4994 to schedule a Free Consultation. The purpose of the consultation is to decide whether you want to hire Amar S. Weisman. To obtain legal services, you must pay a retainer, see Policy on Fees/Costs. The law firm is next to The Circuit Court for Baltimore County, at 305 Allegheny Avenue, Towson, MD, 21204. We represent clients throughout the Baltimore area including Aberdeen. Abingdon, Bel Air, Bowleys Quarters, Catonsville, Cockeysville, Edgewood, Essex, Lutherville, Owings Mills, Parkville, Perry Hall, Rosedale, Sparrows Point, Timonium, Towson, Westminster and White Marsh.
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