Going through a divorce is difficult. Going through a divorce when you are a business owner adds another liar of emotional and financial stress to the equation. So what happens in Minnesota when a business owner goes through a divorce?
Under Minnesota law, martial property must be equitably (not equally) divided. Entrepreneurs who face divorce have concerns about how their business will be treated when property division, spousal support and other financial matters are addressed. Similarly, doctors, lawyers, accountants and other licensed professionals may have a stake in a partnership that will need to be addressed in a divorce.
Courts can utilize several different documents or formulas to value the business some we discussed earlier this month. If a buy-sell agreement or other document exists which provides for a specific value in case of a divorce, said document would presumptively provide such amount for valuation purposes. In other cases, if there is a buy-sell agreement between the owners triggering a buy-out in cases of a divorce with and utilizing a specific value, such agreement would provide strong evidence for the court to consider in setting the valuation price. Other times, the parties will need to retain valuation experts to provide testimony at trial as to what they believe the business is worth.
Our experience in both business litigation and family law has been valuable for our business owner clients who have found themselves dissolving their marriage. We have guided our clients through their divorce throughout Minnesota, Wisconsin and Iowa.