Going through a divorce can be challenging. Child custody, alimony, and asset division can quickly turn complicated and contentious. One of the most complex issues couples can face with divorce is the division of their business, its assets, and debts. If you started a business while married, it may be considered marital property in Pennsylvania, and your spouse may be entitled to a share of the business.
At The Law Offices of Dawn K. Gull, our family law legal team wants to help you understand how business ownership and division work when couples in Pennsylvania seek divorce.
Asset Division in Pennsylvania
Pennsylvania follows the equitable distribution standard when dividing a couple’s assets and debts during a divorce. Equitable division means that the court can divide marital property based on what it believes is fair to both partners. Equitable distribution does not necessarily mean an equal 50-50 split, which is more likely in community property states.
Pennsylvania marital property laws place assets and debts into two categories: marital and non-marital. Only marital property is subject to distribution. If you started a business while married or commingled your business assets and debts with marital assets, your former spouse may be entitled to an equitable interest in the business.
Business Ownership and Divorce
With your business at stake, you need to involve an experienced family law attorney as soon as possible to help you maintain your business ownership through your divorce. If you formed your business during your marriage, chances are a judge will consider it marital property and subject it to division. Even if you owned your business before your marriage, your spouse may have a claim against the increase in the overall value of the business if the increase in value occurred during the marriage.
Factors that can influence whether your business is a marital asset can include:
- When the business was formed
- Whether the spouse was an owner of the business
- Whether the spouse helped contribute to the business’s operation or growth
- The change in the value of the business over time
Additionally, how your business is structured may also lead to different legal and tax implications during divorce. Suppose the business is considered marital property or increases in value throughout your marriage. In that case, your former partner may have a claim on part of the business. A family law attorney can evaluate your case and help you understand how a divorce can impact your business and financial situation. That could include an impact on your assets, potential changes to ownership structure, and the company’s reputation. An attorney can also review your options for helping you protect your business, such as pre- and post-nuptial agreements, buyouts, non-disclosure agreements, and co-ownership arrangements.
Protect Yourself and Your Business by Getting Family Law Representation Today
At The Law Offices of Dawn K. Gull, our family law team wants to help support you during this challenging and emotional time. We know you have poured your blood, sweat, and tears into your business and want to protect it and your family to the best of your ability. Dawn K. Gull has over 25 years of experience practicing family law in Allegheny and Butler counties and can help you navigate this difficult time.
Contact our office today at 412-440-5718 and schedule a confidential case evaluation.