Why an Indiana Business Valuation Divorce Lawyer Is Essential
Working at a laptop, representing how an Indiana business valuation divorce lawyer helps protect your interests.
Why an Indiana Business Valuation Divorce Lawyer Is Essential

Dividing assets in a divorce can get complicated when one or both spouses have an interest in a business. Business interests are not always easy to divide evenly. If you and your spouse cannot agree on how to handle the allocation of a business interest or business assets in a divorce, you need an attorney experienced in such matters to protect your interests. Your Indiana business valuation divorce lawyer can help you navigate the process of valuing and dividing business and other assets.

How an Indiana Business Valuation Divorce Lawyer Can Help Find a Solution

Each party has rights and responsibilities in a divorce. Among these is the right to a just and reasonable division of marital assets. The business itself need not necessarily be divided, but its value must be included in the marital pot subject to division. Therein lies the rub because valuing a business can be a complicated process.

Navigating business valuations in Indiana divorce proceedings alone can be a risky proposition. An experienced Indiana business valuation divorce lawyer protects your interests by choosing the appropriate valuation method for the business involved and working with a respected expert witness to perform the valuation you’ll present to your spouse and, if necessary, to the court.

Why Divorce Is Different when a Business is Involved

When marital assets include a business, two common disputes can arise:

  • Whether the business should be included in the marital pot subject to division in the divorce; and
  • How to value to the business.

The answer to the first question is usually found in Indiana Code § 31-15-7-4, which generally provides that all assets owned by other or both spouses is included in the marital pot in a divorce. Answering the second question is a little more problematic.

There is often not an easy way to divide a business, and there is a lot at stake. You may have a lot of money or sweat equity invested in the business that you do not want to give away. You may be relying on the business for future income or retirement. You may have employees who have an uncertain future depending on the outcome of your divorce. A North Indianapolis business valuation divorce attorney knows how to sort out these issues and find a strategy to meet your goals.

How to Divide a Business in an Indiana Divorce

As noted above, Indiana business valuation divorce law follows the “one-pot” principle when dividing the property of a marital estate. This means that all property owned by the spouses, whether it was acquired during the marriage or before, is considered part of the marital estate. The law also presumes that an equal division of the marital estate is presumed to be just and reasonable unless one party rebuts this presumption. Thus, a spouse’s interest in a business is considered marital property and must be given a valuation to divide marital assets and debts properly.

There are many ways a business can be valued. If a business is publicly traded, courts may use the market capitalization method, where the number of issued shares is multiplied by the stock price to determine the individual’s market value interest in the company.

When a business is not publicly traded, courts may use the revenue or earnings method. In these cases, courts estimate the business’s value based on revenues or earnings over a certain period. Alternatively, the court can also determine the value based on how much the business would be worth if it were liquidated.

Indiana courts have wide discretion in determining the appropriate valuation method and value of a business during divorce proceedings. A North Indianapolis business valuation divorce attorney can evaluate the facts in your case to determine the most appropriate valuation method to protect your future.

An Indiana Business Valuation Divorce Lawyer Can Help Protect Your Interests

When you’ve worked hard and sacrificed to build a business, the idea of losing part of it in a divorce can make the process much harder. The best way to determine your share is through a voluntary agreement with the other party. An attorney can help negotiate with the other side to reach an agreement that is fair to both sides.

If negotiations stall, your attorney can gather the evidence necessary to present your case in court. A North Indianapolis business valuation divorce attorney can help you file for divorce, take inventory of your assets, and fight to protect your interests throughout the whole process.

Get in Touch with a North Indianapolis, Indiana Business Valuation Divorce Lawyer Today

Understanding your rights and how to best protect your business interests is critical during a divorce, and the laws on business valuations are constantly evolving. Brooke Lindsey is an experienced and compassionate attorney serving Boone and Hamilton counties. She has helped clients in a variety of business valuation cases and can help you come to a solution that works for you.

When you need a North Indiana business valuation divorce lawyer, call Brooke at 317-669-9412 or fill out this online contact form to schedule a consultation.