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Business in Divorce? How to divide business by Cathy Hunt - Raleigh, NC Divorce Lawyer

2008-09-11 20:58:06 (GMT) (Caymanmama.com - Business Law News)

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To find out more about how to protect your business during a divorce, watch video YouTube Video below to get valuable legal advise from a leading divorce lawyer in North Carolina, Cathy Hunt.

Raleigh, North Carolina (CaymanMama.com) — Divorce is hard enough emotionally on everyone involved in a separation without considering that some couples also do business together. In the case of a dissolved marriage where a business is part of the equation, it is essential to know all the facts of the laws of your state as well as find reputable legal counsel who will assist your situation while keeping the integrity of the business in mind.

According to North Carolina law, “assets acquired during a marriage be valued so that the marital estate can be fairly distributed to the divorcing spouses.When a divorcing spouse owns a business, the business interest must be valued as part of the marital estate.” This can create a sticky situation between divorcing spouses. In most cases, only one of the spouses actually operates the daily functions of the business, although the other spouse may own shares of the business. Because of this gray area, divorcing business partners may find themselves embroiled in any one of the following situations:

  • A court may order the spouse who operates the business to transfer shares to the spouse not participating the business operations
  • A business can redeem shares held by the non-participating spouse, and for how much
  • Disclosure of business information, including sensitive financial and/or proprietary information
  • The owner who operates the business may have to pay the non-participating spouse for his/her marital interest in the business at the rate of how the interest if valued

During the unfortunate time that a marriage intends to dissolve, it is typical for the attorney representing each spouse to hire an expert to appraise the value of the business. In most cases, the value that each counsel estimates are worlds apart — sometimes millions of dollars apart.

When it comes down to it, getting an accurate and supportable appraisal of the business is one of the most essential steps a divorcing business owner should take to protect his or her business in the case of a divorce. An experienced divorce attorney who specializes in handling cases involving business valuation can locate a reputable business valuation expert and can easily identify those who should not be used in a valuation case.

About Cathy Hunt of Gailor Wallis & Hunt PLLC

Cathy C. Hunt is a former judicial clerk for the Honorable Adolpho A. Birch, Jr., former Chief Justice of the Tennessee Supreme Court. Cathy received her J.D. degree in 1996 from the University of Memphis where she was a member of the Law Review. Her corporate law experience provides her with the expertise necessary to understanding complex equitable distribution cases, especially those involving business valuation issues.



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