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How will your family business be treated in divorce?

On Behalf of | Mar 5, 2019 | Family Law |

We note on our website at the Connecticut law firm of Berdon, Young & Margolis that divorce-linked property division can cause “chills to run up people’s spines.”

The factors that breed angst are clear enough. Post-divorce life looms as a large uncertainty. Homes are lost in divorce. Income is disrupted. Child-support concerns are often paramount. A divorcing party logically seeks to be treated fairly in a court-directed distribution of assets.

Property division is inherently complex. That is especially true in high net worth decouplings where multiple asset types need to be accurately identified, valued and fairly split between divorcing spouses. We stress on our website that soon-to-be exes sometimes lack full appreciation of a given asset’s worth and its upkeep costs. Keeping or surrendering an asset to an impending former partner yields tax consequences, as well.

Such considerations can be especially weighty where a closely held business is concerned. Divorcing couples dealing with a family enterprise might reasonably consider themselves lucky, of course. Yet they will likely confront some challenges and stress while determining the fate of a business, as well.

A recent Forbes article on protecting a family business and related spousal interests underscores that opportunity-yet-challenge dimension where a business features in the divorce process. It notes that many factors can influence a court’s determination concerning how a business should be handled in a marital dissolution.

Family law attorneys with a demonstrated record of advocacy in asset distribution matters can help a client optimally promote his or her interests and secure a fair divorce outcome.