Is a business a marital asset?
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Is a business a marital asset?
The rule of thumb in determining separate versus marital property is this: If the business interest is acquired during the marriage, with joint funds, then it is considered marital property and the value should be shared equally by the spouses. Second, determine the source of funds used to start the business.
Does my wife get half my business in a divorce?
Spouses in partnership Usually one spouse will retain the business. A value will be determined for the business the same way as for a sole trader, ie value to the owner. Similarly, if the business has employees and has been operating for a number of years, it will need to undergo the normal business valuation process.
How is a business valued in a divorce?
If the business interest was acquired during the marriage, with joint funds, it is considered marital property, and the value should be shared by the spouses equally. If the business interest was owned prior to the date of marriage, or acquired with separate funds, it should be considered separate property.
