Divorcing with a Business in TN
Tennessee is an equitable distribution state, meaning all marital assets, including a business, are divided fairly—but not necessarily equally—between spouses during a divorce. A critical factor in this process is determining which parts of the company are marital versus separate property.
If you started or acquired your business during the marriage, it may be a marital asset, subject to division. Even if the business existed before the marriage, any increase in value or income earned during the marriage could be considered marital. Working with a divorce attorney in Knoxville can be key.
Valuing a Business for Divorce
Determining its value is one of the most important steps in dividing a business during divorce. This often involves a professional business valuation expert, who will consider factors like:
- Business income
- Assets and liabilities
- Goodwill and reputation
- Industry-specific considerations
How to Divide a Business in Divorce
Depending on the situation, there are a few different approaches to dividing a business in a Tennessee divorce. Your attorney will help you choose the best option for your goals and circumstances.
Buyout
One spouse may buy out the other’s interest, allowing the buying spouse to retain full business ownership. This option allows the business to remain intact and under single ownership.
Co-Ownership
Sometimes, spouses agree to continue operating the business together after divorce. However, co-ownership can be complicated and requires clear communication and mutual trust.
Sell the Business
If neither spouse wants to continue owning the business, selling it and dividing the proceeds may be the best solution. This option allows both parties to start fresh financially.
Mediation & Divorces Involving a Business
Mediation can be especially beneficial in cases involving a business, as it allows for more creative and flexible solutions. During mediation, your attorney can help ensure that your business interests are represented, aiming for an outcome that keeps the business intact and minimizes financial damage.
Prenuptial & Postnuptial Agreements Involving a Business
If you have a prenuptial or postnuptial agreement that addresses the division of your business in the event of a divorce, these agreements will play a crucial role in the outcome. A well-drafted agreement can provide clarity and protection, potentially saving you from lengthy and contentious litigation.
If you don’t have such an agreement, your divorce lawyer can help negotiate a favorable settlement or prepare you for court.
Why Work with Haines Family Law
Led by John Haines, an experienced attorney with a military background, Haines Family Law combines professionalism, strategic thinking, and a strong work ethic in every case. John is committed to offering clear, practical legal advice while prioritizing your goals and your family’s future. With transparent fees, personalized strategies, and a compassionate approach, John ensures you have the support you need to navigate even the most challenging family law matters.
Contact us today for a free 20-minute consultation.
FAQs: Divorcing with a Business
How long does it take to divide a business in divorce?
The time it takes to divide a business in divorce depends on several factors, including the complexity of the business and whether both parties agree on its value and division. Simple cases may take a few months, while more complex cases can take a year or longer.
What happens if my spouse and I can’t agree on the division?
The court will decide if you and your spouse cannot agree on how to divide the business. A judge will consider factors like the business’s value, each spouse’s contributions, and the financial needs of both parties.
Can I keep my business after a divorce?
Yes, it is possible to retain full ownership of your business after a divorce, but you may need to compensate your spouse for their share of the business’s value. A buyout agreement is often a viable option in these cases.
Let Haines Family Law Protect What You Built
At Haines Family Law, we have years of experience helping business owners navigate their divorce. From determining the value of your business to negotiating fair settlements, our attorneys are committed to protecting your financial future.
Call Haines Family Law today at 865-391-8174 or contact us online to schedule a free 20-minute consultation.
