Divorce proceedings become infinitely more complicated when spouses share high-value, complex assets. The process of dividing the marital estate can be more of a challenge, and even disagreements about financial support could lead to conflict.
Business owners may face disputes regarding the future ownership of their companies and how to address the contributions of each spouse. They may need to agree on a valuation for the business, address joint ownership or even negotiate for one spouse to transition out of their position at the company.
They could be at risk of arrangements that leave them at a long-term financial disadvantage. Business owners usually need to check carefully for signs of a “double dip” during their divorces.
What is a double dip?
A double dip is an attempt to reference the same resources or income twice while settling financial matters in a divorce. It can lead to an unfair financial outcome for the actual business owner. Business owners often face scenarios where the future income of their company influences property division and spousal support obligations.
Frequently, future business income factors into the business valuation process. If it does, then it is unfair to consider that same income for the purposes of financial support. Spouses may need to use a different valuation method or find alternate solutions for ensuring financial fairness when one of them owns a business.
Those with more at risk during divorce, including business owners, often need help ensuring their protection throughout divorce negotiations. Having experienced legal guidance is important for those with specific goals to achieve when they divorce, such as a desire to protect their businesses or professional practices.
