Results 1 to 4 of 4

Hybrid View

  1. #1

    Default How do we divide a business?

    Hello,

    I have a few questions. I'll try to be brief.

    My husband and I are about to separate. We live in New York. We have a 9 year old son. we've been living together for the last 9 years and have been married for 7 seven years. Our separation is amicable and we want to keep it that way. I've been a homemaker for the last 9 years and my husband has his own business that grosses approx $500k yr. He started the business 3 weeks before we were married so the majority of the business assets were accumulated after we were married. My questions are:

    First, should we prepare a separation agreement or a post-nup? and what's the difference between the two?

    Second, should the division of the business be referenced in the separation agreement or only in the final judgement of divorce?

    Third, How is a business valued and divided? Like I said, we are trying to be amicable and fair. What formula should I use as the basis for requesting my share of the business?

    Thank you

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: How do we divide a business?

    Quote Quoting NYShousewife
    First, should we prepare a separation agreement or a post-nup? and what's the difference between the two?
    You're separating. It makes sense to do a separation agreement.

    Quote Quoting NYShousewife
    Second, should the division of the business be referenced in the separation agreement or only in the final judgement of divorce?
    Whatever the two of you agree to do should be fine.

    Quote Quoting NYShousewife
    Third, How is a business valued and divided? Like I said, we are trying to be amicable and fair. What formula should I use as the basis for requesting my share of the business?
    There's no magic formula. The valuation of a business can be very industry-specific, and also very much affected by the centrality of its founder to its success. If you want to come up with a fair value, consider jointly hiring a business appraiser to come up with a figure. (That can cost @$3,000 - $6,000; it could cost more, but shouldn't unless something's particularly complicated about the business and its finances.)

  3. #3

    Default

    Thank you for your help. My husband is central to the success of the business. It is based on his personal relationships with his clients. In what way would this affect how the business is valued? Would it increase or decrease the value and/or the percentage to which I'm entitled? Also, is there a prescribed format required for a separation agreement?

    Thanks again

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default

    It is much harder to sell a business like the one you describe, as when the founder leaves the company much of the business can disappear along with him.

    1. Sponsored Links
       

Similar Threads

  1. Cohabitation Agreements: How Should an Unmarried Couple Divide Their Mortgage Payment
    By qwerty11 in forum Marriage, Cohabitation and Civil Unions
    Replies: 1
    Last Post: 06-14-2010, 07:47 AM
  2. Property Rights: House Divide After Partnership Split
    By sandbach in forum Marriage, Cohabitation and Civil Unions
    Replies: 1
    Last Post: 06-08-2010, 10:22 AM
  3. Best Way to Equally Divide Estate Assets
    By distressedmom in forum Estate Planning, Administration and Probate
    Replies: 2
    Last Post: 07-24-2009, 08:50 PM
  4. Deeds - Quitclaim: How To Divide Up The Land
    By toddmishler in forum Real Estate Ownership and Title
    Replies: 3
    Last Post: 03-11-2008, 02:44 PM
  5. How to Divide a House
    By yonewt in forum Estate Planning, Administration and Probate
    Replies: 1
    Last Post: 06-13-2006, 06:24 PM
 
 
Sponsored Links

Legal Help, Information and Resources