A Michigan divorce requires you to divide your marital assets fairly with your soon-to-be ex-spouse. If you operate a business that you started during your marriage, your spouse may receive a fair portion of it.
As noted by Business News Daily, knowing how much your enterprise is worth gives you an idea of its sale value. While you may not have plans to sell it, your spouse’s fair portion of its value may become part of a trade to help you maintain ownership.
How may I trade other property for business ownership?
Marital property includes assets acquired with your spouse; you will need to divide those assets fairly. To keep your business, you may consider trading another marital property that you could stand to part with for your spouse’s fair share of the enterprise.
If your spouse has a right to half of your company, he or she may give it up to keep the house. When your spouse’s half of the business adds up to half of the value of your house, it may result in a fair trade. If the business has a higher value, however, you may need to give up some of your other marital assets in exchange for your company.
How does a business become separate property?
A signed prenuptial agreement classifies a business as separate property under Michigan law. If you inherited a business or received it as a gift, the law also recognizes it as separate property. Acquiring a business after marriage, however, may require you and your spouse to certify in writing that it represents separate property.
You may not want to lose control of an enterprise you invested time and effort into. Through a professionally appraised valuation of your business, you may gain an advantage in working out a deal to maintain ownership.