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Farmington Hills divorce attorney for family businesses and professional practicesEnding your marriage through divorce will involve multiple types of financial considerations. Determining how to divide your marital assets can often be a complex process, and this is especially true if you are a business owner. A family business or professional practice may be one of your most valuable assets, and it may also be your primary source of income. Ensuring that you can continue to own and operate your business will likely be one of your most important goals during your divorce, so you will want to make sure you understand how to approach this issue.

Is a Family Business Considered Marital Property?

Before determining how ownership of business assets will be handled, you will need to understand whether your business or practice is considered marital property. In general, if the business was founded during your marriage, it will be considered a marital asset, but if you owned the business before getting married, it will be considered separate property. However, even if your business is not a marital asset, you may need to address any increase in value of the business during your marriage. If your spouse contributed to the business, such as by helping manage operations or by investing marital funds in the company, you may be required to reimburse your spouse for these contributions.

Asset Division and Business Interests

If your business is a marital asset, it will need to be considered during the division of marital property. In some cases, spouses choose to sell a family business during their divorce and divide the profits earned. However, this may not be an option for you, so you may need to make other arrangements as you determine how to divide this and other marital assets.

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Oakland County asset division attorneyThere is nothing more stressful and demanding than a divorce. It overturns almost every part of your life, and no matter your profession, you will feel the effects of the divorce. Those who own a professional practice or their own business have slightly different concerns when it comes to a divorce, specifically when marital assets are being divided. 

All marital property will be subject to division in a Michigan divorce. Marital property is any property that was acquired by either spouse during the marriage, including businesses. 

Property division can be difficult, especially dealing with family businesses or practices. Here are four ways to protect your business during your divorce:

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Farmington Hills divorce lawyer, Michigan divorce, business and divorce, parenting time agreements, estate planning and divorceFirst marriages tend to be colored by the innocent blush of first love and all the fun of planning a big wedding and choosing cakes, dresses, dinner menus, and flowers. Second marriages, on the other hand, are often shaded with more doubts and concerns, particularly on the financial front. Consider the following issues that second-marriage partners should discuss, sooner rather than later.

Obligations Related to Prior Marriages

It is not uncommon for one or both partners in a second-marriage situation to have debts, child support, and/or spousal support obligations from a prior marriage. Remarriage may also be a reason to revisit and possibly modify modify support obligations and parenting time agreements, particularly if the remarriage also involves a change of residence and/or job.

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Oakland County Bar Association State Bar of Michigan Collaborative Practice Institute of Michigan WCCDBA Woman Lawyers Association of Michigan
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