Question

How Do You Divide A Business During A Pennsylvania Divorce?

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Answer

If you and your soon to be ex-spouse jointly own a Pennsylvania business then you have more than your personal property and interests to divide at the time of a divorce. You likely do not want to continue working together so you are going to have to find a way to divide your business interests.

The division of your business, like the division of other property, will be based on the principle of equitable distribution. The court wants your assets to be divided equitably (which does not necessarily mean equally).

Accordingly, the first step in dividing your business will be to value your business. This often includes an independent appraiser who is hired to provide you, your soon to be ex-spouse, and your PA divorce lawyers with that value. Once a value has been determined then it will be time to divide the business. In dividing the business, the following factors may be considered:

1. The involvement of each spouse in the business.

2. The percentage of the business owned by each spouse.

3. The value of each spouse to the business. For example, if one spouse is known by customers or clients and creates a goodwill value for the business and the other spouse is a silent partner, then each spouse may have a different value to the business.

4. Whether the business can be divided.

5. Whether the business can be sold and the assets divided.

6. How the rest of your marital estate is divided.

7. The ability of each spouse to earn an income.

As a business owner, you know that every business is different. So too is every Pennsylvania divorce. If you are getting divorced in Pennsylvania and you own a business then I encourage you to call me today at (215) 523-6900 to talk about your rights.

Read more about, How to Protect Your Business During A Divorce.

Petrelli, Previtera & Schimmel, LLC has offices at:

1845 Walnut Street, Suite 1616, Philadelphia, PA 19103

304 Harper Drive, Suite 130 Moorestown, NJ 08057  |  Direct : (201) 655-7204

180 N. Stetson Street, Suite 3500 Chicago, IL 60601  | Direct: (312) 252-2085

Answered 03/29/2017

Disclaimer: This answer was provided by an attorney selected to Super Lawyers, and is intended to be an educated opinion only. This answer should not be relied upon as legal advice, nor construed as a form of attorney-client relationship.

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