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There are currently about 25 million small businesses in the United States. Small businesses are considered marital assets that can cause great headaches during a divorce. Trying to run a business during a divorce is one of the toughest things, because you won’t know what the outcome of the business will be, will still be the owner of the business after the divorce. Because everyone that starts a business knows there’s an emotional attachment almost like your child.

If you and your spouse were running the business’s daily operations then you must ask your self if you can continue to do this during and after the divorce. For most people having this type of daily contact is just about impossible during a divorce when each side is trying to get the better of the other. The small decisions that need to be made jointly are tension and stress filled. A couple of ideas suggested by Divorce Attorney Las Vegas Sam Hughes is to split duties at the beginning of the divorce, have each other work on separate days however probably the best solution would be to have one spouse buy the other spouse out of the business.

One good idea to have in contracts is to make a decision that no big decisions can be made during a divorce.

Before you decide on long term plans for your business you need to determine the value of your business. When one spouse is keeping the business and the other one gets to keep it in exchange for shares or assets the value of the business must be determined, but of course each would want the value of business determined in a way that’s more beneficial for themselves. Some of the factors that come into play when determining the value of the business are:

  • What value were some recent businesses that sold off for a similar price
  • Inventory and Assets currently held by the company
  • Debts and other future obligations of the company
  • Potential for payment of the business
  • Terms of payment

Even if the business was wholly owned by one party prior to the marriage the other spouse may also claim a small marital share. Obviously figuring out how much of the business is marital value can be difficult and will require expert business lawyers and accountants familiar with your type of your business.

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