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Protecting your business during North Carolina divorce proceedings

On Behalf of | Oct 14, 2024 | DIVORCE - Property Division

Divorce can be a challenging time, especially if you own a small or medium business. If you are going through a divorce in North Carolina, you might be afraid of how property division could affect your company’s future.

It is natural to feel concerned about your business’s future during this difficult period. If you find yourself in this situation, understanding your options can help you safeguard your hard-earned business interests during the property division phase of your divorce.

Strategies you should consider

North Carolina courts often view businesses started or grown during a marriage as marital property. This view can complicate the division process. Here are some strategies you can use to protect your business:

  • Accurate valuation: Find a reliable valuator to determine your company’s fair market value.
  • Separate property documentation: Collect evidence that shows which parts of the business might count as separate property.
  • Negotiation: Think about offering other assets to keep full ownership of your business.
  • Buyout agreement: Suggest a plan to purchase your spouse’s interest in the business over time.
  • Business debt allocation: Make sure to account for all business debts during division properly.

These approaches can help you maintain control of your business. However, every divorce is different, so it may be wise to discuss the situation with a lawyer.

Understanding the equitable distribution process

North Carolina uses equitable distribution to split property in a divorce. This doesn’t always mean a 50/50 split. Courts look at several factors when dividing business assets:

  • Each spouse’s income, property, and debts
  • How long the marriage lasted and the age and health of each spouse
  • Whether a parent with custody needs to live in or own the marital home
  • If the marital property is easy or hard to sell or divide
  • Any other factors the court thinks are fair and proper

Protecting your business during a divorce may call for careful planning and expert help. By understanding how property division works and taking steps to safeguard your interests, you can better navigate this challenging time.