Dividing the Value of a Business During a Bellevue High-Asset Divorce

Dividing the value of a business during a Bellevue high-asset divorce can be one of the most stressful parts of the divorce process. If you or your spouse owns a business, figuring out how to calculate its value and divide it fairly can be overwhelming. With all the challenges that come with a high-asset divorce, having the right guidance is important.

At Twyford Law Office, we know your business is more than a source of income; it is something you have built and invested your time and money into. Whether you want to keep your business, negotiate a fair buyout, or explore other options, our attorneys are here to help.

Is the Business Marital Property?

Before you decide how to divide the value of a business in a Bellevue high-asset divorce, you need to determine whether the business is considered marital or separate property. If you established the business during the marriage, it is generally considered marital property. This means both parties have a right to its value. If one person owned the business before the marriage, however, the situation becomes more complicated. In this case, the business may or may not be marital property.

The business might still be subject to division if it grew in value during the marriage or if the non-owner spouse contributed to it. The contribution does not need to be monetary. Unpaid support may still be used in determining whether it is marital property or not.

Washington is a community property state, so most assets acquired during the marriage are split equitably. An equitable division does not necessarily mean a 50/50 split. Courts may look at a variety of factors, such as how much each person contributed to the business.

Valuing a Business in Divorce

Dividing the value of a business during a high-asset divorce in Bellevue can be complicated. It is particularly important to assess the business’s actual value. Several methods can be used to determine a fair valuation.

One method is the market approach, in which you compare the business to similar recently sold businesses in the same area. The income approach is another method, in which you estimate future earnings and then discount to present value. Finally, there is the asset-based approach. With this method, you calculate the business’s tangible and intangible assets and subtract the liabilities from that amount.

Options for Dividing a Business

Once you have valued the business, there are several ways you might divide it during a Bellevue high-asset divorce. These include:

• Buying out the business: One party buys out the other’s share of the business, allowing them to retain full ownership
• Co-owning the business: Both parties remain business partners after their divorce, which requires a strong working relationship and boundary setting
• Selling the business: Neither party wants ownership, so they agree to sell the business and split the revenue
• Offsetting assets: One party may receive other high-value marital assets, such as homes, investments, or retirement accounts, in exchange for giving up their ownership of the business

Because these situations can be complicated, our attorneys could discuss the pros and cons of each option.

Protecting Your Interests in a Business Divorce

Business owners and their spouses can take steps to protect their interests during the valuation and division of a business during a high-asset divorce in Bellevue. Prenuptial or postnuptial agreements can define ownership and division terms in case of divorce. Keeping clear records of business operations could also help if there is a legal fight over the business. Keep in mind that divorce brings out the worst in people, so look for hidden assets or falsified records.

Call Twyford Law in Bellevue To Divide the Value of a Business During a High-Asset Divorce

Dividing the value of a business during a Bellevue high-asset divorce is about more than numbers—it is about protecting your future. Whether you are a business owner or the spouse of one, we know how overwhelming this process can feel. You have worked hard to build a life, and now it is time to make sure you get a fair outcome. 

Contact our team at Twyford Law Office today for guidance.