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Divorce and dividing the value of a business

When two people in North Carolina get a divorce and a business is involved, the process of property division can become complex. Establishing a plan before getting married or when setting up the business can help eliminate this complexity and ensure that both people receive what they are entitled to.

With a prenuptial or postnuptial agreement, a couple who own a business together might agree that they will continue to run the business in the event of a divorce, or they may identify one of them who will buy out the other. If only one person owns the business, the agreement may specify that it is separate property or that its value for purposes of property division will be based on its appreciation in value after the marriage. It might also specify what percent of this value the spouse will receive.

The organizing documents for a company can also serve similar functions. They may specify the percentage the spouse is entitled to while establishing that in a divorce, the business is not transferable. If financial records are kept meticulously, the process of valuation will go more smoothly. Personal expenses should not be mixed with business ones, cash transactions should be tracked and the sources of the company’s funding should be clear and should not be marital assets if the business is to be kept separate.

Even without an agreement in place, couples may be able to reach an agreement about how they will divide property through negotiation instead of going into litigation. Mediation can often be helpful for couples who need to resolve conflict and instead of the adversarial approach of litigation, it focuses on a solution that is mutually acceptable. Even couples who have a pre- or postnuptial agreement that they are following still must negotiate child custody and support.

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I had a wonderful experience with Kennedy Law Associates. Marsha Kennedy and her Associates were knowledgeable, efficient, and caring. I felt like my case was a high priority to them, and they helped me understand every step of the divorce process throughout my entire case. I would highly recommend this firm to anyone looking for assistance with a family law matter!
Jennifer Haines

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I am savvy financially, but had no clue about the divorce process. Through it all, Ms. Kennedy and her staff have been there for me and my kids.
Anonymous

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Marsha Kennedy and her team has expertly handled each situation and guided me through the process.
Kelly

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Kennedy Family Law did a wonderful job representing me in my divorce. Always responsive and kept me informed – they really cared about me.
Bette Frederick

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I have been working with Marsha Kennedy and her team and am so impressed with how my case is being handled.
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