After two people get married, it is common for them to purchase items together with commingled funds. These items may include houses, vacation homes, cars and boats, but there are also couples who have decided to start a business together. Should the couple divorce, they will divide any asset that was acquired during the marriage, and if they opened a business during this time, it would be considered marital property, which means that asset will be included in the property that will be divided.
The following business assets are at risk of being divided in a high asset divorce:
- Sole proprietorships.
- Professional practices.
Before a judge decides how property will be divided between two spouses, they will first have to determine what property is marital property and what property is separate. When it comes to a business, there is always a chance that it will be ruled that the business is marital property, but that it will only be awarded to one spouse. However, it is ideal for this asset to be divided evenly if it was purchased with commingled funds.
Divorces can turn nasty quickly, especially when a spouse realizes they may not be getting what they want or that they have to divide things they may not want to divide. Depending on the state’s law and if spouses have taken the steps necessary to protect themselves and their assets, they may have no choice but to follow these rules and laws. Anyone who has questions about high asset divorces or is planning to divorce their spouse may want to speak to a divorce attorney who can assist them with the process.