What Courts Consider When Dividing Business Assets

Dividing assets is never easy, especially when it comes to dividing business assets. Business assets can be complex and include everything from real estate to intellectual property. If you are going through a divorce or dissolution of a business partnership, it is essential to have an experienced attorney that understands what the courts consider when dividing business assets. In this blog post, we will discuss the different factors the courts consider when dividing business assets to give you a better understanding of what to expect.

1. The Type of Business

The first factor the courts consider is the type of business. Is the business a sole proprietorship, a partnership, or a corporation? If the business is a sole proprietorship, then the business assets are considered personal assets of the owner. If the business is a partnership or corporation, then the assets are divided based on the agreement between the owners or shareholders. If there is no agreement, then the courts will look at the percentage of ownership each person has.

2. The Value of the Business

The second factor the courts consider is the value of the business. The courts will look at the fair market value of the business to determine how much each person is entitled to. They may use a financial expert to help determine the value of the business.

3. The Contribution of Each Person

The third factor the courts consider is the contribution of each person to the business. This can include financial contributions, sweat equity, or management skills. The courts will look at how much each person contributed and may use this to determine how much each person is entitled to.

4. The Debt of the Business

The fourth factor the courts consider is the debt of the business. If the business has debt, it will be divided between the owners or shareholders. The courts will look at the amount of debt and the percentage of ownership each person has to determine how much each person is responsible for.

5. The Future of the Business

The fifth and final factor the courts consider is the future of the business. If the business is profitable and has a bright future, the courts may award one person the business and the other person a larger share of the other assets. This is to ensure that both parties are able to move on and succeed after the division of assets.

 

Conclusion

Dividing business assets can be complicated, but having an experienced attorney on your side can make a significant difference. At Ilvento Law, we have helped many clients in Orlando, FL, with the division of business assets and can help you too. If you need help dividing business assets in Orlando, FL, or have any questions, contact us today for more information.