Do you own a family business?
When separating or divorcing a business asset can be a challenge to resolve disputes. Countrywide mediation Staffordshire are the local business mediation experts.
During a divorce, it can be difficult to put a price tag on a business. This is because different states have different views on how businesses are valued.
While valuing your business, it is important you know how to properly classify the assets as either marital or non marital. During a divorce a business property can either be classified as separate or marital.
Mediation is the perfect choice
A separate asset refers to business property which is owned by one partner before they are married. For example, if David started a graphic design business while in college, then married Lydia after college, his business will be classified as a separate business.
On the other hand, marital property refers to assets that couples acquired when they got married. For example, if John married Alice then started his graphic design business, it will be considered as a marital asset. In some cases, businesses which are considered separate business may be classified as marital if the proceeds are used to support the welfare of a marriage.
For example, if Neil uses the income he gets from his graphic design business to pay the married couple bills, his business may be classified as a marital property. Also, if Neil deposits the income he gets from his graphic design business into a joint bank account he shares with Linda, his business may be categorized as a marital business.
Typically, assets and liabilities of a business are distributed equitably if the business is classified as marital.
It is not ideal for you to value your business based on the current prices. You need to take into consideration other factors, like whether the value of your business assets will be ideal for the short and long term security. See our mediation fees