Baltimore & Towson Lawyer Discusses Divorce and Business Protection
We all know that in life, things happen. The years of wedded bliss you thought you’d have with your significant other might be shortened for one reason or another. However, if that reason is due to irreconcilable differences or other reasons that have led to the demise of the marriage, it is important for you to know how to keep as much of your life intact as possible.
For business owners who are contemplating separation or divorce, your Towson divorce lawyer will tell you that protecting the business as much as possible will be crucial.
What Impact Can a Divorce Have on Your 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.
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 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.
If you are a business owner who is going through the divorce process, and you have questions or concerns about how your business interests may be affected, contact the Law Offices of Amar Weisman, LLC today to discuss your legal options.
Call (410) 321-4994 For a Free Consultation
Call The Law Offices of Amar S. Weisman at (410) 321-4994 to schedule a Free Consultation. The Purpose of the consultation is to determine whether you want to retain this law firm as your Baltimore County & Harford County Family Lawyer. If you do wish to proceed, then you must pay a retainer. See Our Policy on Fees and Costs. The family firm is located next to The Circuit Court for Baltimore County, at 1018 Dulaney Valley Road, Towson, MD 21204.