Divorce is never an easy process, and it can be made even more complicated when there is a business involved. In Iowa, dividing up a business during a divorce is often a complex task that requires careful consideration. Here’s what you need to know about how Iowa courts approach business division during a divorce.
Equitable Distribution
Like many other states, Iowa follows the principle of equitable distribution when it comes to dividing marital property during a divorce. This means that the court will divide the property in a way that it deems fair and equitable, rather than necessarily equal.
Identifying Marital and Non-Marital Property
In the initial stages of divorce, the court will need to determine which assets are considered marital property and which are non-marital. Any property acquired by either spouse during the marriage is generally considered marital property, while non-marital property includes property acquired before the marriage or after separation, as well as any property obtained by a spouse as an inheritance or gift.
Valuation of the Business
Once the court has identified the business as marital property, it will need to determine its value. This can be a complex process, particularly if the business is privately owned. An independent appraiser may be called in to assess the company’s worth.
Deciding on the Distribution
Once the court has established the value of the business, it will consider a number of factors to decide how to distribute it. These factors include the length of the marriage and each spouse’s contribution to the business. The court will consider the value of each spouse’s labor, professional skills, and contributions to the business’s growth and success.
Options for Distribution
There are several options for dividing a business during a divorce. If one spouse wants to keep the business, they may offer to buy out the other spouse’s share. This can be done through negotiation or through a court-approved payment plan. Alternatively, the business may be sold, and the proceeds divided among the spouses.
Conclusion
Dividing a business during a divorce in Iowa can be a complicated process, but it is possible to navigate successfully with the help of an experienced attorney. Understanding the legal principles involved and working with an appraiser to establish the value of the business are key steps in determining a fair and equitable distribution. Ultimately, the goal should be to find a solution that is beneficial for both parties and allows the business to continue to thrive after the divorce.