Divorce & Business Owners

Chesapeake Business Owners Divorce Lawyer

Serving Clients in Chesapeake, Virginia Beach & Suffolk, VA

When you divorce in Virginia, the debt and the marital property you and your spouse have accumulated and shared during your marriage are subject to property distribution. Depending on your jurisdiction, it is split equally (community property states) or equitably (equitable distribution states).

For some Virginia couples, marital property includes a business. They may have started it together, or one spouse may have established it before or during the marriage and overseen its growth. Under these circumstances, the company will also likely become subject to property division unless steps are taken to safeguard it for the business owner spouse.

At Pettrey Law, PLC, Attorney Pettrey understands the blood, sweat, and tears you put into starting and developing your business. We know that compromising all the effort, money, and time you have invested in your company is unacceptable. Fortunately, specific steps can be taken to protect your business during marriage and divorce, which we can help you implement.

Divorce is already stressful and often contentious. Our firm can provide the assistance and guidance you need to reduce emotional and financial strain, protect your rights, and advance your best interests throughout the process.

Request an in-person or virtual consultation with our Chesapeake business owner divorce attorney at Pettrey Law, PLC. Call (757) 796-6996 or reach us on our online contact form.

How Will Divorce Affect Your Business in Chesapeake, VA?

A divorce can affect every aspect of your life, from home ownership to parental rights and the business you have created. How your business is affected will depend on several factors, including the state whose laws have jurisdiction.

Some states are community property states, meaning you may have to split the business with your spouse or give your spouse other compensation equal to half of the business's value.

Other states, like Virginia, use equitable distribution states, where property is divided equitably or fairly between the parties. This may or may not be half of the business. Even so, you will likely be expected to give up at least part of the business, or its value, to your spouse.

Other factors must be considered regardless of whether you live in a community property or equitable distribution state.

Who Owns the Business?

Did you or your spouse inherit the business from family? Is it clear that only one spouse supported and worked at the company? These considerations will help determine how a business will be divided in a divorce.

When Was the Business Started?

If the business was formed before marriage, some states will maintain that it is premarital property and not subject to division. Also, in some states, if you started your business before marriage and your spouse contributed to it after the marriage, it may be considered marital property. In that case, the business is subject to a fair property division.

When a business is started during the marriage, it will most likely be considered marital property and subject to division under state rules.

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Have questions or need legal assistance? We're here to help. Reach out today for a consultation, and let us guide you through your legal journey with compassion and expertise. Contact Pettrey Law, PLC and get the support you deserve.

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Proactively Protect Your Business in Chesapeake & Surrounding Areas

Fortunately, ways exist to protect your business from loss in divorce proceedings. The best way to approach business protection depends on whether or not you are contemplating marriage and want to protect your interests or if you are already married and fear a future divorce may harm your business.

Prenuptial & Postnuptial Agreements

While no one wants to enter marriage contemplating a divorce, planning for “what ifs” is in your best interests when you have a successful business to protect. A prenuptial agreement can be negotiated, drafted, and implemented. This is done by you and your fiancé(e) making a valid contract that addresses how assets will be divided in case of a divorce. You can state in this agreement whether the business is even considered marital property and, thus, whether it would be subject to division.

A postnuptial agreement operates much like a prenuptial agreement, with the only difference being that it is entered into after marriage rather than before it.

An Agreement to Buy/Sell

A buy/sell agreement is a way to establish how your spouse's interest in the business will be determined in case of divorce. You can also specify the amount of a cash award the spouse would receive for their share of the business in case of a divorce. This type of agreement enables you to keep your business.

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How to Protect Your Business During a Divorce

You can still protect the business without a contract, whether a prenup or an agreement to buy/sell.

These can include:

Establish yourself as the sole owner of the business. Organizing documents should specify that the business is not transferable during a divorce. You may still need to provide a cash award to the non-titled spouse at the time of divorce.
Keep your records. Even things like office furniture and rent should not be paid with marital assets; it is essential to maintain records to clarify this.
Separate finances. You should not mix business and personal expenses; by not doing so, you can show that the business is separate. The opposite is true if you do commingle funds.
Spouse as an employee. If your spouse worked at all, even if very minor, keep documents proving the spouse was paid for their services.

Generally, you want to maintain clear and thorough records of everything related to your business.

Keep Your Business Safe with Help from Pettrey Law, PLC

Even with safeguards, a non-titled spouse may still challenge your business in a divorce. They may try to inflate their contributions or obtain an appraisal that overvalues the business. Having a divorce lawyer who is resourceful and knowledgeable is critical to countering these tactics.

Our firm provides business owners with applicable legal options to help keep their businesses intact. With our assistance, you may walk away from your marriage with your livelihood protected and your hard work and investment secured.

Reach us at (757) 796-6996 or by email to discuss your case and options with our Chesapeake business owners’ divorce attorney today.

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