Tremendously helpful, responsibly aggressive in an advisory capacity. Fortunate to have been referred to Kathleen.
Going through a divorce can be particularly challenging for spouses who own their own business or professional practice. These types of significant assets require additional attention to detail when determining property division. If you own a business, you probably are concerned about how your divorce will impact daily operations and the future of your company. Do you have to sell? Can your spouse claim part of the business? Will all your hard work go to waste?
At Ellis Family Law, P.L.L.C., our experienced North Carolina divorce attorneys for business owners are here to provide you with the answers and reassurance you need to protect your company and make smart decisions that will yield favorable results. We proudly represent business owners throughout the Triangle area from our offices in Durham, Cary, Pittsboro and Wake Forest with these complex matters.
There are many different types of business owners across North Carolina. Our skilled divorce lawyers have helped resolve divorce issues for all kinds of businesses, including small and mid-sized and large businesses, and professional practices for doctors, dentists, lawyers, accountants, psychologists, architects and much more.
Businesses and professional practices are large assets with many moving parts that must be considered when going through a divorce. As a business owner, you might have employees working for you that can be impacted by this process as well. We understand that you don’t want your divorce to affect the day-to-day operations of your business. We take great care to review and develop a strategy that will minimize the impact on your business while also aligning with your divorce goals.
One of the most complicated parts of businesses and divorce is determining whether they qualify as marital or separate property. Marital property involves any assets acquired during marriage by either third party gift to just one of you or an inheritance that has been kept separate from your spouse.
Businesses can often cross the line between marital and separate property, which makes them more difficult to divide during property division. Here are some of the most common scenarios that occur with businesses and divorce:
When spouses share ownership of the business, it’s considered marital property as both spouses have a claim in the business’ value. However, when one spouse owned the business prior to the marriage and during the marriage the other spouse occasionally helped with certain tasks, that spouse can claim some part of the business during property division proceedings.
If you started your business prior to marriage and managed to keep it completely separate from your spouse, it may be considered separate property and thus ineligible for property division. Your spouse cannot claim a part of the business’ value. While inheritances are generally considered separate property as well, if you inherited a business and allowed your spouse to be involved in business matters, then the business may become marital property, and your spouse can claim a part of the value.
These complexities in business ownership can make navigating divorce more challenging for business owners. Prenuptial or postnuptial agreements may help business owners protect their companies well ahead of a divorce. Our divorce lawyers for business owners are here to provide you with the guidance you need during this challenging process.
Now that you have determined the value of your business, what comes next? Will you be able to keep your business as is? Or will you have to sell? There are multiple options regarding how to handle a business or professional practice in a divorce. These are some of the most common choices:
Our divorce attorneys understand how complex this situation is and how stressful it might be for you as a business owner. We want to provide you with all the information you need to make a smart decision about your company. Our goal is to work closely with you to understand your goals – whether it’s to sell or keep your business as it is – and will develop a strategy that will achieve a satisfactory outcome.
Yes, a spouse would be entitled to half of the value of a business during a divorce if it is deemed marital property.
Generally, no. The court does not require any assets be sold if there are ways to equalize the division of the total marital estate otherwise. It is pretty rare that a court would require that a business be sold. However, whoever is keeping the business may owe the other party a distributive award to pay out half of the marital value to the other party.
When dividing a business, you must first determine the value of the business. This is typically done with the help of professional business appraisers, who will thoroughly review your business to assess its worth. There are three main methods to determining the value of a business:
No matter which method is chosen to determine the cost of your business, it’s important to complete this step before going into property division proceedings.
Anything acquired during the marriage that is not a gift to one spouse by a third party or an inheritance to one spouse (that is kept separate) is marital property. Thus, if you opened a business during your marriage, without a prenuptial agreement stating otherwise, it is marital property.
Typically a professional business valuator is used to assess the value of a business or practice. The court relies heavily upon neutral, third party professionals in determining the assigned value.
If you are the licensed professional that the business relies upon, or you ran the business and your spouse did not, you will likely keep the business after divorce. It is typical for other assets to be awarded to the other party to equalize the value of the estate, or for a distributive award to be paid out, sometimes over time, to the non-business owner spouse to pay out his/her portion of the business value.
Tremendously helpful, responsibly aggressive in an advisory capacity. Fortunate to have been referred to Kathleen.
...Tremendously helpful, responsibly aggressive in an advisory capacity. Fortunate to have been referred to Kathleen.
Kathleen and her team are excellent. She is straightforward, professional, and gives honest advice, even when it isn’t what you want to hear. She focuses on your best interests and...
Kathleen and her team are excellent. She is straightforward, professional, and gives honest advice, even when it isn’t what you want to hear. She focuses on your best interests and helps you work through a difficult process. I appreciate her guidance and the team’s support. Highly recommend.
Dear Shannon Tucker and Ellis Family Law, I truly cannot say enough good things about Shannon and her team. Going through a custody battle involving my son was one of...
Dear Shannon Tucker and Ellis Family Law,
I truly cannot say enough good things about Shannon and her team. Going through a custody battle involving my son was one of the most stressful and emotional situations I’ve ever faced, and having Shannon in my corner gave me an incredible amount of peace of mind.
From the beginning, I trusted her completely. Even with an incredibly short notice with my request for help, Shannon handled every aspect of my case tactfully, professionally, and with genuine care. She was an incredible negotiator, always made sure I understood what was happening and when/why it was happening, and most importantly, made sure I felt comfortable with every decision along the way.
In a situation that naturally comes with so much stress and uncertainty, Shannon took a tremendous amount of that weight off my shoulders. I knew she was fighting for what mattered most to me and that I could trust her judgment every step of the way.
Calling her a lifesaver honestly feels like an understatement. I will always be grateful for what Shannon did for me and my family. If you are looking for an attorney who is professional, compassionate, trustworthy, and someone you genuinely want in your corner, I cannot recommend Shannon and Ellis Family Law highly enough.
Five stars without hesitation, thank you so much!
I had a civil matter that two attorneys from different firms had handled very poorly. I engaged the services of Kathleen Murphy at Ellis and she did an exceptional job!...
I had a civil matter that two attorneys from different firms had handled very poorly. I engaged the services of Kathleen Murphy at Ellis and she did an exceptional job! My only regret is I didn’t meet her years ago
I was able to enjoy the professional and capable hands of a superior attorney. She made an ugly situation bearable. She was able to get things for me in negotiations...
I was able to enjoy the professional and capable hands of a superior attorney. She made an ugly situation bearable. She was able to get things for me in negotiations that I’d only hoped for. I couldn’t be happier with the results of my divorce.
I cannot say enough good things about this law firm and the support I have received from Kathleen and her team. Going through a difficult and emotional family law matter...
I cannot say enough good things about this law firm and the support I have received from Kathleen and her team. Going through a difficult and emotional family law matter can be incredibly overwhelming, but having an attorney who is knowledgeable, responsive, honest, and truly listens has made such a difference.
Kathleen has taken the time to understand my situation, answer my questions, explain my options, and help me navigate decisions that I never expected to have to make. I have always felt that my concerns were taken seriously and that I had someone in my corner advocating for me while still giving me realistic and straightforward advice.
The entire office has been professional, compassionate, and helpful throughout the process. When you’re dealing with something that affects your children, your family, and your future, having confidence in the people representing you means everything.
I am extremely grateful for Kathleen and her team and would highly recommend this office to anyone looking for knowledgeable and compassionate representation in a family law matter.
We are equally skilled in litigation and in resolving disputes outside of court.
Mediation, arbitration, and collaborative approaches that resolve disputes with less stress and more cooperation.
Thoughtful advocacy for parenting arrangements that protect your children and preserve what matters most.
If you’re a business owner going through a divorce, we have your best interests at heart. We’re here to help you protect your rights and your business every step of the way.
Call us today to schedule a consultation or email us online. We serve business owners throughout the Triangle area and have offices in Cary, Durham, Pittsboro and Wake Forest.
And for a fun twist: don’t miss our “Pour Decisions” section, featuring wine tips from our lawyer-wine specialist Gray Ellis!
